Spinning health club chain Flywheel Athletics has submitted for personal bankruptcy with strategies to shut down its business, making it the newest victim of the coronavirus pandemic.
Flywheel — recognised for its powerful, bicycle-based courses — submitted a bankruptcy petition this 7 days underneath Chapter 7 of the US personal bankruptcy code, which organizations use to market off their property and pay back exceptional debts.
The New York-based mostly outfit will completely near all 42 of its studios all over the US and lay off its 1,200 staff members, some of whom grieved the company’s demise on social media, in accordance to on-line news outlet Insider.
Flywheel experienced come to be bogged down in personal debt. Its individual bankruptcy petition lists up to $100 million in liabilities and only as significantly as $50 million in assets.
The submitting arrived significantly less than a working day right after fellow fitness center chain Town Sports Global kicked off its possess personal bankruptcy, stating the coronavirus pandemic “wreaked havoc” on its functions. The New York Athletics Club owner declared plans in January to buy Flywheel, but it scrapped the offer in April as COVID-19 roiled the industry and shut down gyms close to the place.
Town Sports has filed for a Chapter 11 personal bankruptcy course of action, which is employed to reorganize firms somewhat than wind them down. Gold’s Gym and 24 Hour Conditioning have also submitted for bankruptcy in current months.