NEW YORK (1010 WINS) -- The company that owns New York Sports Clubs and Lucille Roberts gyms has filed for bankruptcy.
Town Sports International Holdings Inc. filed for chapter 11 bankruptcy protection on Monday morning, due in part to “reduced cash flow and liquidity” resulting from the COVID-19 pandemic, the Wall Street Journal reported.
The company closed all of its gyms in compliance with state and local COVID-19 executive orders in March. It has since reopened a number of its outposts in and around New York City, its website shows.
Since then, it has shuttered eight of its fitness clubs, and plans to close more locations soon, the outlet reported.
In June, Town Sports said it would have to come up with approximately $80 million “to fund the costs of a potential bankruptcy filing and to cover operating shortfalls,” according to the outlet.