24 chapter 11

[Uglyrichie]

Dear Member,

I hope you and your loved ones are continuing to stay safe and active.

I am writing to share an important update with you about 24 Hour Fitness and our commitment to delivering the best possible fitness experience for you.

Today we are announcing a financial restructuring, through a voluntary Chapter 11 filing, that we expect will make our company stronger. As part of this, we have received commitments for $250 million in financing that will allow us to continue our club reopening process without interruption. This restructuring will enable us to eliminate debt and close selected clubs that were either out-of-date or in close proximity to other 24 Hour Fitness clubs.

Removing these financial and operational constraints will allow us to focus on our network of approximately 300 existing clubs nationwide. We will have the financial flexibility to upgrade our equipment and expand and improve our fitness offerings to best serve our members and continue our transformational journey.

Importantly, this restructuring process does not change our commitment to health and safety. In addition, during our phased club reopening, all members will have access to any available 24 Hour Fitness club through the end of 2020—regardless of membership level. We will also continue to enhance the fitness experience inside and outside our clubs including our 24GO®app and 24GO® LIVE streaming services through the 24 Hour Fitness® YouTube channel and other offerings that contribute to your health and overall wellbeing.

We plan to provide updates to you during this process, and you may receive notices about the Chapter 11 case in the mail. You can visit the Contact Us portion of https://www.24hourfitness.com/restructure to see FAQs or to raise any questions about this process or your membership. Thank you for your patience with our Member Services department as we work to respond to your inquiries as quickly as possible.

We remain deeply grateful for your membership and offer our heartfelt thanks for your continued loyalty and commitment to 24 Hour Fitness. You provide the inspiration for what we do, and we hope you will choose to continue your fitness journey with us.

We look forward to welcoming you back into our clubs.


All My Best,

 

[flenser]

I looked at one near my house last year, but their equipment was old and very poorly maintained. Looked like the rack, plates and bar had been left outside for a few years before they brought them in. Hopefully, that's not the norm or $250m in new debt isn't going to go very far.

They do, however, have a ton of signs posted in medians along roads all over the city. One would think they were running for city counsel.

 

[notdeadYET]

This was expected. Close the shitty, underperformed, undesirable locations, prop up the other locations and optimize the business model. 24 made some bad decisions over the years trying to figure out who they were competing against (was told this by one of the GM's).

 

[Uglyrichie]

I wonder what will happen to the peeps that are locked in with a yearly

 

[notdeadYET]

I wonder what will happen to the peeps that are locked in with a yearly

A few months ago I'd assume they would have said, you have a location X miles away, go pound sand. But with all the bad press they received by not freezing monthly fees immediately during the lockdown, they will probably let people out if it's their primary location. Now if you bought 1-2 year in advance thru Costco, I have no idea.

 

[Uglyrichie]

What I mean is I pay like 150 a year maybe less my wife pays 50. I wonder if this chapter 11 will get them out of the old agreements which aren't profitable for them

 

[MindlessWork]

The pandemic has hit gyms hard and a lot of the smaller players are going to go bust as regaining members (and revenue) will be hard.

 

[notdeadYET]

What I mean is I pay like 150 a year maybe less my wife pays 50. I wonder if this chapter 11 will get them out of the old agreements which aren't profitable for them

They probably can't fuck with that. I remember now you lucky sob!

In the grand scheme of things closing shitty locations will move the needle way more than a few legacy accounts like yours.

 

[notdeadYET]

The pandemic has hit gyms hard and a lot of the smaller players are going to go bust as regaining members (and revenue) will be hard.

Nope. People are vain, gyms will refill. Even a good number of the people that built home gyms will be back (in time). Sure the fat fucking pussy ass liberals may trickle in later but in time everything will return.

 

[MindlessWork]

Nope. People are vain, gyms will refill. Even a good number of the people that built home gyms will be back (in time). Sure the fat fucking pussy ass liberals may trickle in later but in time everything will return.

I sure hope so, or at least new ones opening up to replace the old ones.