Gym carnage rolls on with YouFit chain filing for bankruptcy
Gym chain YouFit Health Clubs LLC filed for bankruptcy on Monday, joining a growing list of fitness peers forced to seek court protection from creditors amid the pandemic.
The Chapter 11 filing in Delaware allows YouFit to continue operating while it works out a plan to repay creditors, which could include seeking a buyer. YouFit’s petition listed liabilities totaling as much as $500 million and assets of no more than $100 million.
Consumers were forced to stay away from communal gyms as the Covid-19 pandemic spread across the globe this year, leaving chains like 24 Hour Fitness Worldwide Inc. and Gold’s Gym International Inc. without customers. Many U.S. states have now allowed gyms to reopen, but with restrictions on capacity.
YouFit has some 85 locations in the U.S., many of which are located in Florida, according to its website. YouFit was founded in St. Petersburg, Florida in 2008 and remains headquartered in the state.
The company hired Greenberg Traurig as bankruptcy counsel, FocalPoint Securities LLC as investment banker and Hilco Real Estate LLC as real estate adviser, according to its bankruptcy petition. YouFit agreed to let its advisers try to sell the company, court papers show.
A lawyer handling YouFit’s bankruptcy didn’t immediately respond to an email seeking comment Monday.
The case is YouFit Health Clubs LLC, 20-12841, U.S. Bankruptcy Court for the District of Delaware.