Flywheel Sports Inc., the operator of spin boutiques that gained popularity with the rise of stationary biking, has filed for bankruptcy and is shutting down, the latest fitness-industry casualty of the COVID-19 pandemic, the Wall Street Journal reported. The company filed for chapter 7 protection in U.S. Bankruptcy Court in New York on Monday after closing all its gyms. Unlike chapter 11, which is typically used by companies seeking to reorganize, chapter 7 is used to wind down businesses and address unpaid bills. Closely held Flywheel was founded in 2009 and, unlike rival Peloton Interactive Inc., it had relied heavily on bricks-and-mortar studios. Flywheel struggled as some of those studios closed down amid the pandemic. Just before the pandemic forced it to shut down its studios, the New York-based chain settled a lawsuit with Peloton over technology theft. Peloton had sued Flywheel, which also produces stationary bikes for home use, accusing the company of stealing its so-called leaderboard technology. Flywheel acknowledged that it copied Peloton and promised to remove the technology from its bikes. Financial terms weren’t disclosed. Flywheel then reached a deal to sell itself to Town Sports International Holdings Inc., the operator of the New York Sports Clubs chain. But amid government-mandated gym closures to stem the spread of the coronavirus, Town Sports scrapped the deal in April.
