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Town Sports International plans sale after bankruptcy filing
Posted on Tuesday, 15 September 2020 14:19
Gym operator Town Sports International, the owner of New York Sports Clubs has filed for bankruptcy protection and intends to sell itself.
The company made the announcement after it was forced to close all of its locations as the coronavirus pandemic worsened and resulted in social distancing measures being introduced across the globe.
As a consequence of this step, the firm’s revenue plummeted and it has now filed with the US Bankruptcy Court in Delaware.
Town Sports said two groups of its lenders, led by Kennedy Lewis Investment Management and Tacit Capital, respectively, have already expressed an interest in acquiring the company as a going concern.
It noted that at present, it prefers the former’s proposal to the latter’s.
This is not the first time in recent days that an acquisition of a gym operator has been mooted; on Friday, private equity firm Leonard Green & Partners agreed to invest GBP 100.00 million into UK-headquartered PureGym.
Proceeds of that injection have been earmarked for shoring up the firm’s balance sheet after the pandemic forced it close all of its locations, which number 500 and span the UK, Denmark, Switzerland and Poland.
The company has since reopened all of its locations.
Back in May, Gold’s Gym International filed for bankruptcy protection, while 24 Hour Fitness Worldwide followed suit in June.
Town Sports Holdings has been active in the fitness segment since 1973 and now claims to be one of the largest owners and operators of fitness clubs in the northeastern US.
The company announced an acquisition of its own earlier this year; in January, it agreed to pick up the studio business of Flywheel Sports, a provider of indoor cycling classes.
Zephyr, the M&A database published by Bureau van Dijk, shows it has announced four takeovers in the last three years, with targets having included the likes of Lucille Roberts Health Clubs, Spad Holdings and TMPL Holdings.
© Zephus Ltd