AUSTIN (KXAN) — 24 Hour Fitness, the national gym and fitness chain, has filed for Chapter 11 bankruptcy and will close more than 100 of its location nationwide, including three gyms in the Austin area.
The company said the COVID-19 pandemic that caused the chain to close all its locations for months is why they’re going to reorganize with a smaller footprint of gyms.
Locations at Lake Creek, Parmer and Round Rock are now permanently closed, the company’s website says. Across Texas, the company is closing 26 locations with 12 in Houston and 11 in Dallas.
The company said it has $250 million in funding that will allow it to reopen some locations. When the closures in 14 states are complete, 24 Hour Fitness will operate about 300 gyms. The locations that will reopen will do so by the end of June.
Gyms were allowed to reopen in Texas at 25% capacity May 18, and then capacity was increased to 50% at the beginning of June under Gov. Greg Abbott’s Reopen Texas plan.