Owner Of Boston Sports Club Gyms Considers Bankruptcy
BOSTON (CBS/CNN) -- The owner of Boston Sports Club and a number of other gyms predominantly on the East Coast warned Monday it's considering bankruptcy because of the temporary closures sparked by the pandemic.
Town Sports International said in a regulatory filing that the "scope and duration of the interruption to our operations has substantially reduced our cash flow." To preserve cash, it laid off much of its 7,000 people workforce and stopped paying rent.
Town owns around 200 gyms, including Sports Club branded locations in Boston, New York, Philadelphia and Washington, DC.
Boston Sports Club faced a lawsuit earlier this year when it said it would continue charging members while their facilities are shut down. The company changed course and freezed all memberships.
Gyms will be allowed to reopen in Phase 3 of the Massachusetts reopening plan.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. CNN's Jordan Valinsky contributed to this report.)