The government shutdowns have resulted in another bankruptcy costing thousands of jobs. Popular gym chain 24 Hour Fitness said it is filing for Chapter 11 and will close 100 locations around the United States, citing the COVID-19 pandemic.
Beginning in March, numerous city governments and state governors ordered the closure of “non-essential” businesses, which included gyms, to slow the spread of the virus.
In a news release on Monday, the chain said it is “continuing to reopen clubs in a phased approach and welcome members in locations nationwide, carefully following state and local government and public health agency guidelines.”
“The company expects to reopen the majority of its footprint by the end of June. During the time of phased club reopenings, all club members will have access to any available 24 Hour Fitness club through the end of 2020, regardless of membership level,” the release said.
CEO Tony Ueber placed most of the blame on government-mandated shutdowns from the coronavirus for the closures.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11. With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders,” he said.
Earlier this month, iconic retailer JC Penney announced it would shut down 154 locations across the United States by the end of this summer. It came days after the firm filed for Chapter 11 bankruptcy.
“While closing stores is always an extremely difficult decision, our store optimization strategy is vital to ensuring we emerge from both Chapter 11 and the COVID-19 pandemic as a stronger retailer with greater financial flexibility to allow us to continue serving our loyal customers for decades to come,” Chief Executive Jill Soltau said in a statement about the closures at the time.
–Metro Voice and wire serivces