Gym Closure News.

[flenser]

Since gym closures, the permanent kind, seem to be just ramping up, I thought it would be a good idea to cover them in a single thread. If they all manage to survive more the better, but if they don't, maybe we can alert each other about auctions in different areas, etc.

So here's the only one with hard data I've seen so far.

24 Hour Fitness weighs bankruptcy as coronavirus pushes fitness industry to brink

"[the source], who requested anonymity because the information is confidential, cautioned that bankruptcy is not definite, and may still be avoided."

 

[MindlessWork]

Golds Gym closing 30 company owned gyms.

COVID-19 closures: Gold’s Gym closes 30 locations due to coronavirus

 

[Villain]

24 Hour has no reason to be closing permanently. They can easily disinfect the place and I have yet to really ever see one that’s been packed.

 

[MindlessWork]

24 Hour has no reason to be closing permanently. They can easily disinfect the place and I have yet to really ever see one that’s been packed.

Yes or they can simply close the most underutilized locations while keeping the most profitable ones.

 

[Villain]

Yes or they can simply close the most underutilized locations while keeping the most profitable ones.

I don’t think they’re even staffed, so sanitizing it regularly would be the issue.

 

[MindlessWork]

I don’t think they’re even staffed, so sanitizing it regularly would be the issue.

True but wouldn't keeping open locations that get very little use or have few members be a burden?

 

[Villain]

Plus, their memberships are absurdly high

 

[Villain]

True but wouldn't keeping open locations that get very little use or have few members be a burden?

Lol, that would be almost every location of theirs then.

 

[MindlessWork]

Plus, their memberships are absurdly high

LA Fitness' memberships are insane too. However I pay $64 a month for a gym that just opened in my town as the only other option was Planet Fitness also I don't have space for a home gym.

 

[flenser]

24 Hour has no reason to be closing permanently. They can easily disinfect the place and I have yet to really ever see one that’s been packed.

It's not infection, it's massive debt. They have revenue, or had it, but no cash on hand to service their debt.

 

[MindlessWork]

It's not infection, it's massive debt. They have revenue, or had it, but no cash on hand to service their debt.

Exactly. When gyms are ordered to close by state governments and with no definite dates to reopen these gyms had very little coming in to service debts or pay their employees and overhead.

 

[flenser]

Exactly. When gyms are ordered to close by state governments and with no definite dates to reopen these gyms had very little coming in to service debts or pay their employees and overhead.

I learned earlier that insurance companies are pressuring the gyms to stop billing people monthly to avoid any potential law suits. That means all those New Year's sign ups that have automatic payments taken out every month for life but never show up to work out are gone for good.

 

[Villain]

It's not infection, it's massive debt. They have revenue, or had it, but no cash on hand to service their debt.

So the underlying issue is debt and not enough members and now Covid has made it so they have zero income.

 

[MindlessWork]

I learned earlier that insurance companies are pressuring the gyms to stop billing people monthly to avoid any potential law suits. That means all those New Year's sign ups that have automatic payments taken out every month for life but never show up to work out are gone for good.

Yes I offered to continue paying the $64 each month (auto-paid out of my checking account) to that local gym I go to but they politely refused that for that very reason. Oh well...hope they do reopen soon and I would not mind to give them the extra money then as they are a new local 2-location gym.

 

[Uglyrichie]

Well shit that would be a bummer I only pay a 100 a year at 24

 

[HIGHRISK]

Not sure why there closing . I’m sure there still charging members every month so what’s changed for them? I know crunch has still been hitting me up every month.

 

[notdeadYET]

If anything they will file bankruptcy, restructure, close non-performing locations and move on. And never buy 24 hour membership directly from 24. Costco does a 2-year membership that will save you a ton of money if you can afford the upfront/pay-at-once.

 

[Villain]

Well shit that would be a bummer I only pay a 100 a year at 24

Did you do the year upfront through Costco like @notdeadYET mentioned?

 

[Uglyrichie]

No, shit I got it 20 yrs ago something like pay so much and ur locked in at a certain amount. Wife signed me up, some special was 56 a year but they raised mine people sued and won so I don't go more than 120 I think wife's at 56 still hasn't been to the gym in ten years. Sorry I can only go to sport and below thou but the gym takes maybe 15 min to walk to

 

[notdeadYET]

No, shit I got it 20 yrs ago something like pay so much and ur locked in at a certain amount. Wife signed me up, some special was 56 a year but they raised mine people sued and won so I don't go more than 120 I think wife's at 56 still hasn't been to the gym in ten years

I was just typing this. That I bet you had one of those lifetime deals. My neighbor has one, she pays the annual fee (never goes either, lol).