The owner of New York Sports Clubs is planning to file for bankruptcy as soon as today after talks for financing that would have helped the chain weather the COVID-19 pandemic fell through, Bloomberg News reported. Town Sports International Inc. had been negotiating a potential $80 million capital injection from Kennedy Lewis Investment Management. The investment firm backed away after Town Sports realized it would need more money and asked for $200 million. The gym owner has been in talks with lenders as it seeks to refinance a loan coming due in November. Negotiations are ongoing, but lenders have been reluctant to put in new money or extend the debt. Kennedy Lewis bought a large chunk of the company’s borrowings when they were trading at a steep discount. Town Sports is in discussions with other third parties who could support the company through its restructuring process.
