24 Hour Fitness closes 25% of locations; many in CA

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storewanderer
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24 Hour Fitness closes 25% of locations; many in CA

Post by storewanderer »

https://www.marketwatch.com/story/24-ho ... 2020-06-14

These gyms, were always a bit of a slimy business model. Here in Reno they seem to change ownerships/affiliations often (have seen multiple Gold's Gyms come and go, conversion locations, new builds, move ins to old spaces, etc.) and I have heard horror stories from many people who move away and believe the gym is committing fraud by continuing to charge them for service.

Oddly in Reno the two 24 Hour Fitness locations have been 24 Hour Fitness for many years; one location was built as 24 Hour Fitness and the other was built as some other brand but became 24 Hour Fitness shortly after opening and has kept that branding ever since. 24 Hour Fitness also opened a smaller location in Sparks which was labeled as "24 Hour Fitness Sport" and that one did not last long and converted to something called Body Fuel Fitness. One of the locations being closed is that conversion location here in Reno; not surprising as there is other competition in South Reno. Curiously a local fitness club called "Lakeridge Tennis Club" in Reno about 1.5 miles from the closed 24 Hour Fitness closed a couple weeks ago to make way for some more dense development on its space.

Now in response to COVID as certain businesses have eliminated employee fitness/wellness benefits which many people paid for gym memberships for, this will cause another issue for gyms as some people cancel memberships due to their employer no longer paying for it as a benefit.

Not to mention the whole COVID-related concerns about going to a gym and potentially contracting the COVID. It is unclear if COVID transmits through sweat but it if transmits through cough/sneeze/singing and people are heavily exerting in a gym that is blowing out a lot of air which could be transmitting COVID.

On the bright side if people eat out less and consume less salty food there may be less of a need for the gym visits.

These gyms have filled up a ton of "dead retail" and that is why I posted it here. This will not be helpful for commercial real estate if a large number of gyms fold.
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Re: 24 Hour Fitness closes 25% of locations; many in CA

Post by SamSpade »

Here they just assumed the memberships of the (now failed again) Bally/B-Fit gyms:
https://www.oregonlive.com/health/2020/ ... tness.html
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Re: 24 Hour Fitness closes 25% of locations; many in CA

Post by Alpha8472 »

The company is closing their high rent locations to save money. There is one in San Francisco at Alemany in the basement of an apartment complex. It had a malfunctioning air conditioning system, stale air, crowded with people, had 1 working sink in the restroom, no paper towels, broken blow dryers, no towel service, and was not even 24 hours. That location was a former Bally's that was taken over. Good riddance.
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Re: 24 Hour Fitness closes 25% of locations; many in CA

Post by SamSpade »

It appears they are vacating Utah entirely (unless their footprint has significantly grown) -
Salt Lake City
Sandy
Taylorsville
Murray
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Re: 24 Hour Fitness closes 25% of locations; many in CA

Post by Alpha8472 »

They just filed for Chapter 11 bankruptcy today.
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Re: 24 Hour Fitness closes 25% of locations; many in CA

Post by storewanderer »

SamSpade wrote: June 15th, 2020, 12:36 pm Here they just assumed the memberships of the (now failed again) Bally/B-Fit gyms:
https://www.oregonlive.com/health/2020/ ... tness.html
Looks like only one OR location is closing in Beaverton. Perhaps that transaction helped save some OR locations.
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