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24 Hour Fitness files for bankruptcy, closes 134 locations

The CEO of 24 Hour Fitness said the devastating effects of COVID-19 has forced the company to file for Chapter 11 bankruptcy.

The nationwide gym chain 24 Hour Fitness has filed for bankruptcy and plans on closing 134 locations in 14 states.

Filing for Chapter 11 bankruptcy will allow the company to secure about $250 million in debtor-in-possession financing, subject to court approval, according to its announcement on Monday. The company said that these funds, plus 24 Hour Fitness's cash from operations, will allow the company to continue to reopen clubs nationwide in accordance with local and public health agency guidelines. 

“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11," CEO Tony Ueber said in a statement. "With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders.”

Ueber said the company plans on restructuring to ensure a "resilient future."

The announcement comes just one month after Gold's Gym, another major workout chain, announced it would also be filing for bankruptcy because of coronavirus. 

Nearly a third of the 134 gyms that are closing are located in California. Behind California's 42 closures, Texas has the second-most with 26 and Colorado has the third-most with 13 gym closures. 

"As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests for many years to come,” Ueber said.

Gyms have been one of the hardest hit industries since the coronavirus began to spread in the U.S. According to CNBC, 24 Hour Fitness announced back on March 16 it was closing all clubs for "an extended period of time" due to the coronavirus.

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How many 24 Hour Fitness locations are closing by state: 

California: 42

Sacramento

Benjamin Holt Sport

Manteca

Carmichael Active

San Diego

Murrieta

Temecula Sport

Downtown Chula Vista Active

La Jolla West

San Marcos

Vista Sport

Colorado: 13

Denver

Greeley Super Sport

Aurora

Aurora City Place Super Sport

Belmar Sport

Broomfield

Colorado-Yale

Englewood Sport

Fort Collins North Super Sport

Highlands Ranch

Littleton Belleview Sport

Meridian

Southglenn Super Sport

Florida: 7

Hawaii: 1

Illinois: 2

Maryland: 2

Annapolis Riva Rd. Super Sport

Glenarden Super Sport

New Jersey: 7

Nevada: 9

New York: 10

Oregon: 1

Beaverton

Texas: 26

Austin

Lake Creek

Parmer Sport

Round Rock

Dallas

Cedar Hill

Bedford Super Sport

Carrollton Woodlake SS

Coit

Frisco Sport

Irving (Metroplex Plaza)

Keller Super Sport

Lewisville

Mockingbird

North Richland Hills Sport

Plano Super Sport

Houston

Atascocita

Bingle

Friendswood

Fry Road & Saums Road

Highway 249 (Compaq)

Houston FM 1960

Katy

League City

Pasadena East

Richmond

Spring-Cypress

West Woodlands

Utah: 4

Virginia: 1

Tysons Corner Super Sport

Washington: 9

Vancouver Andersen

Seattle

Captial Mall

Auburn

Ballinger Village

Everett 19th Avenue SuperSport

Kent Kangley Super Sport

Lakewood Mall

Puyallup Super Sport

Renton Highlands Active