24 Hour Fitness Seeks Loan Ahead Of Potential Bankruptcy Filing

SAN RAMON, CA — 24 Hour Fitness is expected to permanently close some gyms and is reportedly preparing for a potential bankruptcy filing soon, The Wall Street Journal reported.

The San Ramon company, which operates 430 gyms across the country, is seeking a loan to stay in business, WSJ reported. 24 Hour Fitness could file for bankruptcy in the weeks to come.

24 Hour Fitness has been in business for more than 30 years and faces $1.3 billion of debt from a 2014 leveraged buyout by AEA Investors and the Ontario Teachers’ Pension Plan, Bloomberg reported.

24 Hour Fitness said in a statement sent to Bloomberg that it is considering many options to stay in business, but would not comment on the specifics.

Gyms have been closed since March in California. Gov. Gavin Newsom is expected to soon give guidance on reopening for fitness facilities, the Los Angeles Times reported.

24 Hour Fitness said it has been rearranging equipment to ensure social distancing as gyms reopen and thoroughly cleaned clubs.

Read more at The Wall Street Journal and Bloomberg.