Flywheel Sports and its affiliates have filed for bankruptcy and joined the list of coronavirus-crushed fitness study operators.
Registration of Chapter 7 of the spin-cycle studio brand would lead to the liquidation of its assets. The documents were filed late Monday in a U.S. bankruptcy court in New York.
Todd Meyers, a lawyer at Kilpatrick Townsend & Stockton in New York, deals with the flywheel case. He acknowledged the submission of Chapter 7, but declined to comment further.
Flywheel Sports’ estimated assets are between $ 10 million and $ 50 million, and its estimated liabilities are between $ 50 million and $ 100 million, according to court documents.
Flywheel Sports, founded in 2010 in New York’s Flatiron District, has grown rapidly. As of 2017, it had 42 studies nationwide and employed 1,200 people, according to the company.
However, a few years before the pandemic, the operator of the cycling studio got into financial trouble and was looking for buyers.
Town Sports International, owner of sports clubs in New York, supposedly agreed to buy Flywheel Sports in January to use the financing of the acquisition to repay a $ 200 million loan maturing in November.
But the deal fell through and Town Sports itself filed for bankruptcy earlier this month.
Fitness clubs were among the most affected companies during the pandemic. Gold’s Gyms International a 24-hour fitness worldwide also filed for bankruptcy this year.