Private-equity-backed YogaWorks Inc. has filed for bankruptcy and plans to permanently close its dozens of studios across the U.S. but keep offering virtual classes, WSJ Pro Bankruptcy reported. The California-based yoga studio chain is the latest fitness business to succumb to shutdowns and restrictions on gyms and in-person gatherings related to the coronavirus pandemic. The company said yesterday in a press release that its operations will continue via its livestream and on-demand digital platforms, YogaWorks Live and MyYogaWorks, as well as its teacher training and workshop departments. The digital business has been profitable since it was started in 2013, the company said. YogaWorks was founded in 1987 and was acquired by private-equity firm Great Hill Partners in 2014. YogaWorks said that it has an agreement to sell its brand, digital platform and education business to Serene Investment Management LLC, subject to better offers at a potential bankruptcy auction. Serene has also agreed to provide YogaWorks with a $3.35 million bankruptcy loan to fund its chapter 11 case, court papers say. Other fitness businesses have been hit hard by the pandemic. Gold’s Gym International Inc., 24 Hour Fitness Worldwide Inc. and the owner of New York Sports Clubs have all filed for chapter 11 protection in recent months. The fitness industry has responded to pandemic closures by boosting digital platforms and streaming options to allow patrons to exercise from home. YogaWorks Chief Executive Brian Cooper said the COVID-19 pandemic “created unprecedented challenges for our industry and business,” including studio closures, and social-distancing measures and attendance restrictions in studios that have since reopened.
