24 Hour Fitness Files for Bankruptcy Amid Gym Shutdowns (3)

24 Hour Fitness Worldwide Inc. sought court protection from its creditors, unable to keep up with debt payments after the Covid-19 pandemic shut down gyms nationwide.

The fitness chain’s Chapter 11 petition was filed in Delaware, court papers show. Such a restructuring allows a company to keep operating while it works out a plan to pay its creditors and ease its debt load of $1.4 billion, plus lease obligations.

24 Hour lined up $250 million in so-called debtor-in-possession financing backed by its creditors as it starts re-opening locations across the country, according to a statement Monday. The majority of its ...