Showing posts with label New York Sports Club. Show all posts
Showing posts with label New York Sports Club. Show all posts

Monday, September 28, 2020

[Updated] New York Sports Clubs is reopening today on Avenue A

Updated 10/1: That was fast: NYSC announced that this location was permanently closed as of 9/30.

The New York Sports Clubs outpost reopens today on Avenue A between Second Street and Third Street...

This reopening comes less than two weeks since owner Town Sports International Holdings Inc. said in a bankruptcy-court hearing on Sept. 16 that it is working out a deal with a group of lenders and private-equity firm Tacit Capital LLC for them to serve as the lead bidder for the assets. 

Some background via The Wall Street Journal:
Town Sports filed for chapter 11 bankruptcy [on Sept. 14] after facing debt coming due this fall as well as reduced cash flow and liquidity due to coronavirus-related closures.

Company executives need access to capital “so they can reopen the gyms with appropriate health and safety improvements, and comply with relevant consumer protection laws and obligations,” said Nicole Greenblatt, a lawyer representing Town Sports, during the court hearing.


After its bankruptcy filing, Town Sports sought to reassure its roughly 600,000 members that it wasn’t going out of business through postings on its gym brands’ websites. 

The company has requested to give back 22 location leases to its landlords and potentially reject 13 more locations, depending on lease negotiations. 

This past spring, NYSC members were angry that the club was still charging them membership fees despite the COVID-19 closure. Town Sports did eventually offer refunds

Gov. Cuomo allowed gyms to reopen with limited capacity in the city on Aug. 24.

Meanwhile, the ground-floor retail space here at 28 Avenue A has been vacant since Gracefully closed in November 2014. No word on the rent ask. What is wrong with this storefront? 


In other local gym news, Ludlow Fitness on Delancey will not be reopening