The bankrupt owner of New York Sports Clubs and Lucille Roberts said it was prepared to pay out as much as $850,000 in an effort to quell a social-media-fueled backlash over its billing practices during the coronavirus pandemic, WSJ Pro Bankruptcy reported. The company, Town Sports International Holdings Inc., said that it set aside that amount for customer refunds after filing for bankruptcy Monday. Many more gym members than expected have asked for their money back due to pandemic-related closures, the company said. Some customers complained on social media that they were charged fees even though their local gyms remained closed. Town Sports had initially expected to set aside about $225,000 to cover such requests, a lawyer for the company said during a court hearing on Wednesday. The company’s billing practices are the subject of a continuing probe by New York state authorities. Town Sports said in court documents that it earmarked the money “to compensate customers for certain inconveniences over the past six months that have been caused by the COVID-19 pandemic.”
