24 Hour Fitness

About 24 Hour Fitness

24 Hour Fitness filed for Chapter 11 bankruptcy on June 15, 2020. The gym chain had approximately 430 clubs and 4 million members. The COVID pandemic forced gym closures nationwide. 24 Hour Fitness had 1.4 billion in debt from a 2014 leveraged buyout by AEA Investors and Ontario Teachers Pension Plan. The company closed approximately 130 underperforming clubs during bankruptcy. 24 Hour Fitness emerged from bankruptcy in December 2020 after eliminating 1.2 billion in debt. The restructuring gave ownership to creditors. The fitness industry faced challenges from COVID but recovered as consumers returned to gyms after the pandemic. The case illustrates the impact of external shocks on highly leveraged companies with high fixed costs.