Report: In-Shape explores possible sale, restructuring
In-Shape is exploring ways to reduce its $70 million debt load, one that has been exacerbated by the coronavirus pandemic, according to a report.
(An In-Shape Health Club in Vacaville is pictured in an undated image. Photo: Google Maps)
Popular California fitness chain In-Shape Health Clubs has hired a financial advisor for a possible restructuring of its debt or a sale, according to a report.
The Stockton-based fitness company is exploring ways to reduce its $70 million debt load, one that has been exacerbated by the ongoing coronavirus health pandemic.
Like other businesses, In-Shape was forced to close its 60 clubs throughout California in March after California Governor Gavin Newsom issued a statewide shelter-at-home order. Some gyms re-opened around May when state officials eased restrictions, but a second wave of coronavirus infections forced gyms and other businesses to close a second time later in the summer.
In-Shape was part of a consortium of gyms called the California Fitness Alliance that urged state officials to allow fitness centers to re-open, citing a decline in revenue since the start of the coronavirus pandemic. The company currently has around $70 million in debt, according to data reported by financial news organization Bloomberg.
On Friday, Bloomberg said In-Shape had hired a financial advisor to explore ways of reducing some of its debt, including a possible restructuring or sale of the company. The news outlet cited its information from sources who were not identified because In-Shape's ongoing financial discussions are private.
Bloomberg’s report did not say whether In-Shape was leaning more toward filing for bankruptcy protection or if it had received any offer from an outside company for a sale. The company is owned by two investment firms: Fremont Private Holdings and Pulse Equity Partners, LLC.
Locally, In-Shape Health Clubs operates three gyms in Vacaville, two in Fairfield and one each in Suisun City and Vallejo. The company recently took over a closed 24 Hour Fitness location near Solano Town Center in Fairfield and re-opened it under the In-Shape brand.
Some of those local gyms have announced a return of limited indoor services since Solano County received clearance from state health officials last month to move into a less-restrictive tier for businesses and schools.
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