Boston Sports Clubs Owner Files For Bankruptcy

BOSTON — The owner of Boston Sports Clubs filed for bankruptcy Monday in a plan that would allow the popular gym chain to keep operating as it works out its debts following months of closures.

Town Sports International LLC filed for Chapter 11 bankruptcy in Delaware, meaning the company aims to keep the business alive while paying off its creditors.

Town Sports runs more than 180 Boston, New York, Philadelphia and Washington Sports Clubs — most of which are still closed. There are 25 Boston Sports Clubs in Massachusetts, 11 of which are in Boston.

"The duration of the COVID-19 pandemic and the extent of its impact on our business cannot be reasonably estimated at this time," Town Sports said in a quarterly earnings statement last week. "We anticipate that the COVID-19 pandemic will continue to negatively impact our operating results in future periods."

Town Sports was sued by BSC members in June over the company's continued collection of monthly dues during the shutdown. Attorney General Maura Healey said the company "hasn’t been fair to its members about their right to cancel their membership and continued to charge members who tried to cancel. Make no mistake—this is illegal."

The gym responded with an email to members saying it was freezing memberships at no cost.

Gyms were permitted to reopen in phase three of the state's reopening plan — but with heavy restrictions. Building and room capacity restrictions and social distancing measures have the gyms serving far fewer customers than before the pandemic.

• Boston Sports Clubs Sued For Collecting Fees During Shutdown