24 Hour Fitness is closing its Kent Kangley location and gyms in Auburn and Renton due to the disproportionate impact of the COVID-19 pandemic.
The San Ramon-California based company also filed for relief under Chapter 11 of the U.S. Bankruptcy Code, according to a 24 Hour Fitness news release on Monday. The company, which started 35 years ago, will close 134 gyms nationwide, including nine in Washington. About 300 locations will remain and are expected to reopen in the next few weeks.
The Panther Lake location in Kent, 20600 108th Ave. SE, is scheduled to reopen July 7, according to its website. That club opened in 2018 at a former Albertsons store location.
The closed locations include Kent Kangley, 12922 SE Kent Kangley Road; Auburn, 915 Auburn Way N., and Renton Highlands, 4110 NE Fourth St.
“All club members who may have been impacted by potential club closures have already been communicated with in advance for details,” said a company spokesperson in an email.
Chief Executive Officer Tony Ueber issued the following statement.
“If it were not for COVID-19 and its devastating effects, we would not be filing for Chapter 11,” Ueber said. “With that said, we intend to use the process to strengthen the future of 24 Hour Fitness for our team and club members, as well as our stakeholders. We expect to have substantial financing with a path to restructuring our balance sheet and operations to ensure a resilient future. The COVID-19 environment has proved that attention to health and fitness are more important now than ever before.
“As a result of this restructuring, we will gain financial strength and flexibility to accelerate our business transformation plan, which includes reinvestment in our existing clubs, opening new clubs and introducing several new innovative products and services that will enhance the fitness experience for our club members and guests for many years to come.”
The company has asked the court for authorization to continue paying team members’ wages, salaries and benefits and to continue its various member programs. As a result, the company’s salaried and hourly team members should continue to be paid on the normal schedule, according to the company news release.
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