In-Shape files for bankruptcy, CEO blames pandemic restrictions
(An In-Shape Health Club in Vacaville is pictured in an undated image. Photo: Google Maps)
Fitness center chain In-Shape has filed for Chapter 11 bankruptcy protection, the company announced on Wednesday.
In a letter sent to members of its gyms, the company’s chief executive said the ongoing coronavirus health pandemic created economic issues that the fitness chain has struggled to overcome in recent months.
“[California’s] extended shutdown of gyms has dramatically impacted our business, which is requiring us to develop a plan to restructure our business for the future,” Francesca Schuler, the company’s CEO, said in a statement.
The announcement comes nearly two months after Bloomberg reported the company was exploring ways to reduce its $70 million debt load. Possible strategies that were considered including a sale of the company or a possible restructuring of its businesses.
In-Shape was part of a consortium of gyms that unsuccessfully lobbied California Governor Gavin Newsom to ease restrictions on fitness centers during the coronavirus health pandemic.
In-Shape operates six gyms in Solano County: Three in Vacaville, two in Fairfield and one each in Vallejo and Suisun City. In the announcement on Wednesday, Schuler said the company would continue to offer health and fitness programs and services through the bankruptcy period.
“I want to reassure you that In-Shape is not going anywhere,” Schuler wrote. “Our team is committed to serving our amazing community of members, and we plan to continue offering safe, affordable and equitable access to fitness for many years to come.”
Schuler said the bankruptcy filing is not expected to impact the memberships of current In-Shape customers.
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