N.Y. Sports Clubs Ex-Chief Builds Rival Chain With Kennedy Lewis

The former head of New York Sports Clubs, the gym chain that went bankrupt as the Covid-19 pandemic was spreading, is building a new fitness business that could compete with NYSC’s new owners.

The venture led by Patrick Walsh is backed by $100 million from investment firm Kennedy Lewis Investment Management, according to people with knowledge of the situation. Kennedy Lewis will become the company’s largest shareholder, receiving 51% of common stock for providing the senior secured, first-lien delayed draw term loan, the people said.

The investment firm will also appoint three directors to a five-member board, the people ...