Thursday, September 3, 2020

Report: Parent company of New York Sports Clubs fit for Chapter 11 filing



NYC gyms were permitted to reopen yesterday with reduced capacity and COVID-19 restrictions in place.

There were lines reported at some gyms, such as at the Blink on Avenue A.

One notable exception to the reopenings: New York Sports Clubs. On Tuesday, the owner of the chain said it may need to file for bankruptcy "in the near future."

Per Bloomberg:

Town Sports International is in talks with its lenders to refinance a loan coming due this fall as its cash flow and liquidity continue to tighten, the company said in a regulatory filing Tuesday. The gym owner and operator said it doesn’t have enough cash on hand to repay the debt when it comes due in November.

The company missed a payment on its revolver last month, violating terms of the debt. Lenders could send the company a notice of default and demand immediate repayment of all obligations, but none has done so yet, Town Sports said in the filing.

So the NYSC outposts in the area, such as the one at 28-30 Avenue A between Second Street and Third Street that looks like a bad prototype for an Iron Man helmet, will remain shuttered for the foreseeable future.

Updated 9:30 a.m.

HOLD ON. EVG reader MP reports that the Astor Place location — "Elite by NYSC" — is open...

12 comments:

Anonymous said...

Six months with no income while you still have to pay rent.

Gojira said...

So those bastards destroyed that fabulous Mid-Century Modern Burger-Klein facade that had been in place for decades, rather than adapt it, as could have easily been done, preferring instead to give us yet another featureless, bland, corporate face, and they barely made the five-year mark. Priceless.

JAMES said...

Gojira, You call that Burger-Klein facade iconic? It was as much an eyesore as this one is.

david said...

I hope it never opens again

EV123 said...

Not to mention they were taking monthly and annual subscription fees while they were closed. First said that everyone would be reimbursed and cancel memberships...if you came into the gym in person, which was impossible as they were closed. They finally caved and agreed to stop charging monthlies. Had to go through my credit card company to dispute erroneous charges b/c knew TSI was going to file for BK any day. Saw this one coming!

Anonymous said...

Isn't the Astor place "Elite' location the one that's known for being overly cruisy?

Anonymous said...

They were always a schlock operation as far back as I remember. You would have thought that with the quality and super competitive pricing Blink has offered, they would have cleaned up their act a long time ago. The fact they they were continuing to charge membership fees after the covid shutdown (until Latisha James stepped in) says it all. Wonder if the locations in Philadelphia, Boston etc are in the same situation?

Anonymous said...

It was a weird place to open NYSC and they RUINED that great building facade for no reason.

Anonymous said...

They never took down the Gracefully Deli sign from the front of the building. They spend all that money to change the front of the building but leave the sign. I miss that place they had great baked goods.

Eden Bee said...

NYSC is the devil. Of course they charged people while closed, when they were open they refused to let people cancel their memberships. I am part of one of their many class action law suits and hope to get my check for $3 in the mail soon!

Gojira said...

@JAMES, whether you liked it or not, the Burger-Klein facade had the distinction of being unique, not cookie cutter, and while Mid-Century Modern might not be to your taste, it certainly was an eye-catching front, unlike the crap that's up there now.

https://gvshp.org/blog/2011/07/29/from-singing-to-sofas-the-history-of-the-burger-klein-building/

Anonymous said...

I doubt they’ve paid rent since they closed back in March... owned by a bunch of hedge fund guys lining their pockets while fleecing the consumer.