24 Hour Fitness CEO Tony Ueber blamed the public health crisis, which has killed nearly 116,000 Americans, for the company's financial problems. Big national operators including Gold’s Gym and 24 Hour Fitness have filed for bankruptcy, with the latter company permanently closing 133 locations as part of the restructuring. A large portion of the gyms that will close are based in California and Texas. Advertisement The company has not responded to a request for comment through the gym’s online portal. Gold’s Gym, a similar chain to 24 Hour Fitness, filed for bankruptcy in May. Each arises from government-imposed business operations restrictions that temporarily shut down physical access to a membership club facilities and provides early insights into how similar cases might unfold. … Alternatively, based on the arbitration agreement with a class action waiver set forth in the membership bylaws, ClubCorp moved to compel the case to arbitration. 24-Hour Fitness also made certain at-home classes available for free and encouraged members to download the 24GO app, which has wourkout ideas available. The company has an $837 million loan coming due in March 2022 and $500 million in unsecured notes maturing in June 2022, the news outlet said. Subscriber Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. These are the locations in Southern California that will not reopen. In the Delvecchio case in Massachusetts, the plaintiffs alleged that Town Sports International’s (“TSI”) gyms engaged in unfair and deceptive practices by initiating and accepting automatic payments in April 2020 for services that they knew they would not provide due to the government-imposed shutdowns and that the gyms made it impossible for members to cancel their memberships. He grabbed his phone and told the Lakers they were facing a must-win game. Mar. Like many companies, we are looking at a number of different opportunities to work with our partners to improve and enhance value.". The company shut down more than 400 club locations because of the COVID-19 pandemic in March, saying that closures may last for "an extended period of time.". Instead, TSI asserted that its gyms merely temporarily suspended operating its fitness clubs in compliance with Massachusetts law, which was not a “change in operations” as defined within the provision. Three such recently filed cases are Labib v. 24 Hour Fitness USA Inc., Civ. LeBron James woke up from his gameday nap Tuesday and decided it was time to send his Los Angeles Lakers teammates a message. As fitness centers and gyms remain closed because of the coronavirus, 24 Hour Fitness is reportedly considering filing for bankruptcy. So, while we're still temporarily closed, we've formulated a plan and taken the steps to ensure the reopening of Fitness 19 is done safely and timely while exceeding all requirements for safety and cleanliness. National gym chain 24 Hour Fitness has filed for bankruptcy, after the Covid-19 pandemic forced its facilities shut for months. 24 Hour Fitness said Monday in its Chapter 11 filing that it has secu… It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Civ. . National gym chain 24 Hour Fitness has filed for bankruptcy, after the Covid-19 pandemic forced its facilities shut for months. Account active This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. 24 Hour Fitness struggles against a series of rival gyms that have cheaper memberships such as Planet Fitness. WATCH LIVE: BREAKING NEWS AND CONTINUING COVERAGE, San Diego to legally enforce new public health orders over coronavirus, California COVID-19 Tracker: San Diego coronavirus updates. since. 24 Hour Fitness is committed to keeping our community healthy. 3:20-cv-0074-JLS-AHG (S.D. No. The Labib and Delvecchio cases both involve state statutes that specifically address gym and health club closures. Likenesses do not necessarily imply current client, partnership or employee status. People are also flocking to boutique studio classes, including OrangeTheory, or in-home alternatives, such as Peloton, which recently reported a surge in members because of the pandemic. Trademark and Copyright 2020 Cable News Network, Inc., a Time Warner Company. Submit your business to potentially be featured on KTLA 5 News. "As we go through these challenging times, together, we will continue to explore meaningful ways to inspire and motivate you every day," Ueber said. ClubCorp also pointed to the fact that it mitigated any injury by issuing members club usage credit along with offering online services and virtual offerings for the time the club facilities were closed. In Labib, Cal. In making these arguments, 24 Hour Fitness relied on the provision in its membership agreement that further provides that memberships would be extended “for the same period [a] Club of Enrollment was closed or completely unavailable” if closed or unavailable “for more than 30 consecutive days.”. The company said the virus affected it “deeply and in many ways,” which included the temporary closures of many of its 700 global gyms. The company has less than $1 million in cash, according to Moody’s (via CNBC). .”. “If it were not for COVID-19 and its devastating effects, ... 24 Hour Fitness locations have been closed during the pandemic, which has taken an enormous toll … https://www.foxnews.com/.../coronavirus-gym-fitness-chains-closed-pandemic This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. c. 93 § 82 relates to cancellation of contracts which did not apply because the plaintiffs were suing over the collected dues, not a cancelled contract, and it appeared that the majority of the proposed class intended to remain with gym members once TSI reopened its fitness centers.

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