Spinning gym chain Flywheel Sports has filed for bankruptcy with plans to shut down its business, making it the latest victim of the coronavirus pandemic.
Flywheel — known for its intense, bicycle-based classes — submitted a bankruptcy petition this week under Chapter 7 of the US bankruptcy code, which companies use to sell off their assets and pay outstanding debts.
The New York-based outfit will permanently close all 42 of its studios around the US and lay off its 1,200 employees, some of whom grieved the company’s demise on social media, according to online news outlet Insider.
Flywheel had become bogged down in debt. Its bankruptcy petition lists up to $100 million in liabilities and only as much as $50 million in assets.
The filing came less than a day after fellow gym chain Town Sports International kicked off its own bankruptcy, saying the coronavirus pandemic “wreaked havoc” on its operations. The New York Sports Club owner announced plans in January to buy Flywheel, but it scrapped the deal in April as COVID-19 roiled the industry and shut down gyms around the country.
Town Sports has filed for a Chapter 11 bankruptcy process, which is used to reorganize businesses rather than wind them down. Gold’s Gym and 24 Hour Fitness have also filed for bankruptcy in recent months.