Midprice gym chain 24 Hour Fitness Worldwide Inc. is seeking a financing package to stay afloat through a possible bankruptcy filing that could come within weeks, WSJ Pro Bankruptcy reported. The company, which is based in San Ramon, Calif., and is owned by private-equity firm AEA Investors and the Ontario Teachers’ Pension Plan, has been shopping for a potential bankruptcy loan of as much as $200 million. “We are considering a broad range of options to ensure the long term sustainability and success of 24 Hour Fitness and we are not going to comment publicly on our strategic plans. We look forward to continuing the reopening of our clubs,” the company said in an email. The company has been working with restructuring lawyers at Weil Gotshal & Manges LLP, some of the people familiar with the matter said. The gym chain was struggling before the coronavirus pandemic forced its 430 locations to close their doors temporarily, burning cash and losing membership, according to a Moody’s Investors Service report and an earnings report reviewed by WSJ Pro Bankruptcy.
