National fitness chain 24 Hour Fitness, which filed for Chapter 11 bankruptcy protection Monday, will permanently shutter a dozen workout centers in the Houston area as part of its reorganization.
The company said it would close 134 gyms nationwide, including 12 in the Houston area and 26 in Texas, according to a list provided by the company. Some 23 Houston-area locations will remain.
The pandemic and the closures it wrought forced the company to make difficult decisions, CEO Tony Ueber said.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” he said in a news release. “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.”
The company also plans to secure about $250 million in debtor-in-possession financing, according to its release. If approved by the court, the company said those funds should provide sufficient cash, when combined with cash from operations, to keep operating.
At $500 million, Wells Fargo is the company’s largest creditor, according to its bankruptcy filing.
The fitness chain continues to reopen clubs in a phased approach, and expects to reopen the majority of its footprint by the end of the month. Regardless of membership level, club members have access to any open 24 Hour Fitness club through the end of 2020.
amanda.drane@chron.com
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