New York Sports Club and Flywheel both on the brink

New York Sports Club is struggling to stay afloat, and its parent company is considering bankruptcy.

As of mid-April, the club’s parent company — Town Sports, which operates gyms around the Northeast — noted in its 2019 annual report that ‚Äúsubstantial doubt exists as to our ability to continue as a going concern,” according to The Real Deal, which added, “Town shuttered 95 percent of its locations and borrowed $12.5 million from its revolving credit facility. It also became embroiled in legal battles with customers after Town continued to charge membership fees and allegedly made cancellation difficult despite its gym closures.”

The downtown locations include 217 Broadway (at Barclay), 70 Pine and 30 Broad.

And in more bad news, New York Sports Club was in the process of buying Flywheel late last year, but that deal fell through and now Flywheel has been seized by one of its lenders who is looking for a potential buyer. At its peak, the company had 42 locations around the country but closed 11 of the underperforming studios last August. Ours is at 415 Greenwich at Laight.

 

Comment: