(Bloomberg) — The owner of the New York Sports Clubs chain is considering a bankruptcy filing as gyms across the country remain closed to stop the spread of coronavirus.
Town Sports International Holdings Inc. has been in talks with advisers and lenders to get ahead of its nearly $200 million loan maturity in November, according to people with knowledge of the matter. It’s weighing a Chapter 11 filing as it seeks financial support from creditors, but the talks could also result in an out-of-court solution, the people said. The company’s shares, which were already trading for less than 50 cents, tumbled another 21% on Tuesday.
Even before the virus shuttered the global economy, a number of gym chains were struggling with onerous debt loads.