The parent company of Boston Sports Clubs, known locally as Latitude, will restructure after filing for bankruptcy, according to an announcement from corporate officials.
The statement on behalf of Town Sports International emphasizes that gym-goers and employees — including in Peabody, Bradford, Methuen, and Salisbury — should not notice any change to workout environments for the foreseeable future.
“Town Sports intends to use the Chapter 11 process to engage in further discussions with their landlords and other creditors to successfully restructure their debts to best position the Company for long-term success in the current fitness industry environment,” the statement, released Monday, reads.
With Chapter 11, companies generally seek a seamless transition in operations upon a filing, “so our members will not recognize a break in service,” according to gym leadership.
The statement explained, “Restructuring is the best way to properly respond to the COVID-19 pandemic, with the long-term goal to emerge as a thriving powerhouse in the fitness industry.”
Workers who answered phones at each of Boston Sports Clubs’ North of Boston locations directed questions about the bankruptcy filing to the online corporate statement.
Town Sports International, which runs 185 gyms across the country including 30 in Massachusetts, has as many as 25,000 creditors, CEO Patrick Walsh wrote in court filings.
The company has been under scrutiny since March, when members and employees spoke up about vast layoffs and continued gym fees despite locations being shut down due to the pandemic.
By then, the company reported $136 million net operating loss in a first-quarter financial report.
Breanna Edelstein may be contacted at bedelstein@gloucestertimes.com
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