FTI Consulting is handling the restructuring of 24 Hour Fitness as the chain of gyms blames the impact of the COVID-19 pandemic for triggering Chapter 11.
Based in San Ramon, CA, the company runs more than 400 fitness centers across the US.
24HF expects the majority of its clubs will reopen by the end of June and the rest by the end of the year. They have been retooled for the COVID-19 environment with touch-free check-in/check-out, stringent cleaning and social distancing protocols.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," said CEO Tony Ueber.
He said the restructuring will provide 24HF the financial strength and flexibility to accelerate its business transformation plan, which includes the closing of 130 locations.