24 Hour Fitness Worldwide Inc. sought court protection from its creditors, unable to keep up with debt payments after the COVID-19 pandemic shut down gyms nationwide.
The company will permanently close about 130 gyms, including 18 locations around the Greater Los Angeles area and Orange County.
For the record:
1:31 PM, Jun. 15, 2020An earlier version of this article included a list of gyms slated for closure that incorrectly described several as being located in Los Angeles County.
The fitness chain’s Chapter 11 petition was filed in Delaware, court papers show. Such a restructuring allows a company to keep operating while it works out a plan to pay its creditors and ease its debt load of $1.4 billion, plus lease obligations.
24 Hour lined up $250 million in so-called debtor-in-possession financing backed by its creditors to allow the company to continue operating as it starts reopening locations across the