https://www.youtube.com/watch?v=YUBDDJ0Qams
For Several Months now, Rumors have been circulating that 24 Fitness might have to declare chapter 11 Bankruptcy. This is of course is because of the global health issues we have all been dealing with here for the last few months but that’s not the only reason. It turns that prior to the 2-month shutdowns 24 Hour Fitness was already dealing with debt issues.
So, In this episode of Total Body Training, we answer the questions,
What happened to 24 Fitness? Will they declare bankruptcy? Can they recover from bankruptcy?
My Prediction for another 2 fitness franchises that might benefit from this bad economic times?
Welcome back to Total Body Training, I’m Jean Carlos and If you haven’t already subscribed to my YouTube channel then please click the subscribe button. On this channel, we go over fitness tips, trends, and tutorials to help you stay informed and get in shape.
On with the video!
What happened?
Thanks to Mr. C gyms (Mr. C is code for the Corona Virus) across the country had to shut down for over 2 months. However, gyms in various parts of the country are slowly starting to open, and that includes 24 Fitness. However, because of the 2 months down many struggling to pay to stay open. If you have been watching my YouTube channel then you’ll know that we recently made a video called “Golds Gym Declares Bankruptcy” In this video, we discuss how Gold’s Gym had to declare Chapter 11 bankruptcy and close 30 of its locations. It’s looking like 24 hours is headed in a similar direction.
A Bloomberg article Entitled “24 Hour Fitness while Gyms start to Reopen” by Katherine Doherty says the following;
“The operator of more than 430 mid-tier gyms is in talks with investors over the terms of a loan that would keep the company operating through a court restructuring, according to people with knowledge of the situation. The proposed Chapter 11 filing would cut 24 Hour’s borrowings by swapping debt for equity and handing control to lenders, said the people who asked not to be named discussing a private matter.” By Katherine Doherty May 29, 2020,
If you are like me then you probably don’t much what bankruptcy means so I went over this topic in-depth in our Gold gyms Bankruptcy Video. If you want more information about that click the link in the description section of this video to learn more.
One of the biggest differences between what’s going on with Gold’s Gym and 24 Hour Fitness is that 24-hour fitness was already dealing with financial issues before Mr. C, In fact, the company was preparing for a financial restructuring right before Mr. C.
24 Fitness started to see a decline in business around January of 2019 which coincide with them debuting a self-check-in system, apparently, there were issues with the system and I’m not sure what those issues were but people are impatient and people hate having technological issues so if this issues on their first time visiting 24 Hour fitness then it could give them the red flag that they shouldn’t sign up, that they should instead go try something else.
Bloomberg articles state that in 2019
“Memberships at the company fell to 3.4 million in 2019’s third quarter from 3.5 million in the second quarter, according to Moody’s Investors Service.”
- Katherine Doherty (Bloomberg Article)
But is the failed rollout the only reason to blame?
Well, the article perhaps is looking for higher-end gyms, then like Lifetime or Equinox which I like to think of like the Wholefoods or the Target of fitness or perhaps cheaper services like Planet Fitness, which I like to think as the Walmart of fitness.
So, are they going declare bankruptcy?
Everything seems to be pointing in the direction. I would be surprised if we didn’t hear anything in the next 2 weeks. And this is all happening they are opening reopening locations all across the US. It seems like they have got a lot on their pate right now.
Can 24 Fitness Recover from Bankruptcy?
I believe they can. As I mentioned in my Golds gym Bankruptcy Video, a website called Investopedia put out an article called “8 Bankrupt Companies that Came back”
The article shows some huge companies that almost went under but came back, I’m going to name a few that you might have heard of,
If you are watching this one your phone this on your smartphone, then chance is you might be watching on a sleek sexy I Phone I am not because Google Pixel 2 is more budget-friendly cause I don’t want to have wanted to declare my own bankruptcy if you know what I’m saying, but Apple is a huge company now and it might be hard to believe that they declared bankruptcy in 1997.
But the company came back put I-pod, and eventually the I-Phone. They came back with new innovations that made them become insanely profitable again.
Marvel Entertainment also declared bankruptcy in 1997 when Thanos snapped his fingers and dusted half of all the people from existence, Box Officials reached records low in 97’ Nah, JK But the company did declare bankruptcy in 1997 and they somehow managed to solve that by coming and making fun movies everybody loves.
Several companies that declare bankruptcy are able to solve these issues and even come back to be better than they were before. So, yes 24 Hour fitness can recover from this.
QUESTION OF THE DAY: Do you think 24 Fitness Can Recover after Declaring Bankruptcy? Let me know down in the comments below, I do answer nearly all of my comments. I love making friends on YouTube. After all, yall are why I’m here.
If you watch the video you will notice that into greater depth about this topic so go ahead and watch it!
24 Hour Fitness Prepares to Declare Bankruptcy | June 2020
TIMESTAMPS: 0:00
INTRO 0:25 24-Hour fitness Questions
0:55 What happened to 24 Hour fitness
1:28 Bloomberg Article About 24 Hour Fitness Bankruptcy
2:08 Golds Gym Files for Chapter 11 Bankruptcy
2:35 24 Hour Fitness Self Check-in Problems
3:40 Lifetime and Planet Fitness
5:20 Investopedia Article about Companies that declared Bankruptcy
7:00 QUESTION OF THE DAY: Can 24 Hour Fitness Recover from Bankruptcy
7:24 My predictions for companies that will grow in 2020
7:45 Bicycle.com article about Peloton Proliferating in 2020
8:37 Planet Fitness will grow in 2020
10:20 Online Home workouts
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Citations/ Websites mentioned in this article: Bicycle.com Peloton Share Holder Article https://investor.onepeloton.com/stati…
24-hour Fitness reportedly preparing for a bankruptcy filing https://www.usatoday.com/story/money/…
CNBC EQUINOX and Planet Fitness https://www.youtube.com/watch?v=KafQT… INVESTOPEDIA: https://www.investopedia.com/articles…