24 Hour Fitness pushed to the verge of bankruptcy

CNBC reports that popular gym chain 24 Hour Fitness is near the point of bankruptcy amid coronavirus.

Sources tell the network that executives for the gym have considered filing following a downgrade in credit rating by Moody’s, citing “negative membership trends, very high-interest burden and negative free cash flow prior to the coronavirus outbreak, as well as approaching maturities to provide limited flexibility to manage through the crisis.” The pandemic has forced 24 Hour Fitness to shutter 400 locations.

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With gyms mandated to close due to social distancing guidelines, the company has also suspended membership fees, forcing it further into debt.

At present, executives for 24 Hour Fitness have hired advisors at investment bank Lazard and law firm Weil, Gotshal & Manges to develop a plan of action for the coming months.