Subscribe to Retail Dive. . Licenses for Exports to Are You Ready for the UPC? Burlington Stores Will an Aggressive Expansion Help it Avoid a Filing? No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys or other professionals or organizations who include content on the National Law Review website. COVID-19 is still with us. The company recently reported that it acquired $300 millionsenior secured credit facility with Wells Fargo & Company maturing onOctober 30, 2025. In June, the largest childrensapparel retailer announced that it would shutter more than 300 stores. However, like AMC, its owner, Cineworld Group PLC, faces significant debt, streaming services, and slow return of customers. Mobile Arbeit und regionale Feiertage was gilt? In fact, two Louisiana-based insurers became insolvent in 2021 alone. Massachusetts (eff 12/21/2021) 14. . As a Premium user you get access to background information and details about the release of this statistic. Equinox Another Gym Filing? US Executive Branch Update March 2, 2023. So are all of its consumer habit-changing effects. Sign In. According to theVariety, the theatre chain with 659 US locations is raising $47.7 million in cash. The Motely Foolreports that the operator of Victorias Secret and Bath & Body Works have a mixed bag during the pandemic. A 2015 Kimco case study found that one year after the arrival of LA Fitness gyms at two shopping centers, six other tenants . H-2B Cap for Fiscal Year 2023 Is Met: A Supplemental Cap Increase As COVID-19 Emergency Waivers End, DEA Proposes to Expand Tele- How Employers Need to Prepare for the End of the COVID Public Health USPTO To Transition To Electronically Granted Patents In April 2023, Reductions in Force: Some High-Level Issues To Consider, CMS Streamlines Stark Law Self-Referral Disclosure Protocol (SRDP), The Alice Eligibility Two-Step Dance Continues, FTC is Talking Trash and Zeroing-in on Recyclable Claims, FTC Hosts Forum on Proposed Rule to Ban Noncompete Clauses. After a near-record number of Chapter 12 farm bankruptcy filings in 2020, according to data from the U.S. Courts, Chapter 12 bankruptcy filings were down an incredible 50% in 2021.The number of Chapter 12 filings in 2021 is the lowest in the last decade and this is the first time in at least 10 years that there were fewer than 300 filings. Employers Beware: Non-Disparagement and Confidentiality Covenants in Consultation Paper On Review of Corporate Governance Norms For A High Californias War On The Fast-Food Industry Continues. The slowdown compared to prior years brought the 2021 total as of June 30 to 242 cases, a drop from each of the prior 11 years except for 2014. Louisiana (eff 8/4/2021 until 9/1/2021 unless modified) 13. White House Reviewing Proposed Regulations on Reinstated Superfund You Dont Need a Machine to Predict What the FTC Might Do About Is It Compensable? According toCNN, the company continues to close stores due to little foot traffic closing 400 to 450 stores by the end of this year of its more than 5,000 stores globally. The circumstances for membership freezes is largely different, and the duration is likely longer. LA Fitness seems to be in the best position to use the bankruptcy process to reduce its footprint . Why Barnes & Noble Is Copying Local Bookstores It Once Threatened, Watch: Retired Army Col. Paris Davis Awarded Medal of Honor, What Floridas Dying Oranges Tell Us About How Commodity Markets Work, U.K., EU Agree to New Northern Ireland Trade Deal. 24 Hour Fitness filed for Chapter 11 bankruptcy Monday and said it would permanently close more than 130 of its 400 clubs across 10 states, including 18 in Los . House Energy & Commerce Subcommittee Holds Hearing on U.S. Hunton Andrews Kurths Privacy and Cybersecurity. . Accepting Cryptocurrency and Digital Asset Donations: What Charities Need to Know. According toWWD, the companys third quarter loss of $46.8 million, as well as the Canadian arms bankruptcy filing in August, may not be enough to place it into bankruptcy. 2021 Turning Points: The Biggest Bankruptcies Thus Far. LA Fitness's primary competitors include Planet Fitness, Anytime Fitness, 24 Hour Fitness and 17 more. The Supreme Court Grants Petition to Decide Constitutionality of CFPB Understanding Your Law Firms Value Proposition, Spike in Migrants Crossing U.S.-Canada Border Raising Concerns, Bill to Amend the Gramm-Leach-Bliley Act Introduced to Congress, Energy & Sustainability Washington Update March 2023. The company recently hired a real estate consulting firm to assist in lease re-structuring. The global pandemic has upended retail across the country. The Childrens Place Losses keep Piling Up. "In 2021, there was 'only' $2.1 billion in total debt (brought to . Call us at 844-762-6204, M-F 8am to 5pm pacific for questions specific to gift cards, distributions, or claims. . 2021 1. Fitness View More. Mandatory Arbitration Agreements Remain Valid in California, Antitrust Practitioners Expect Activity With Climate Issues. If you would ike to contact us via email please click here. Locking Tik Tok? February 2021 Newsletters. Chains like 24 Hour Fitness, Gold's Gym, and the owner of New York Sports Clubs have already filed for bankruptcy and collectively laid off hundreds of employees. Health clubs, gyms, and studios in all states were . Europe: Is Eltif 2.0 a More Viable Structure for Long-Term Investment in the EU? Please create an employee account to be able to mark statistics as favorites. To stay out of bankruptcy court, retailers will need liquidity and working capital, they'll need to adapt to an ever-shifting landscape that is more digital than ever before, and they'll need some luck. 12. Dirty Steel-Toe Boots, Episode 16: Investigations and the OSH Acts DOE Issues FOA for Carbon Capture Large-Scale Pilots and Carbon A Forward Look at IRAs Sweeping Impact on the EV Sector [PODCAST]. We will see if the company can keep landlords at bay long enough to get through the process without having to resort to bankruptcy protection. Dave & Busters Can the Entertainment Company Get People Back? LA Fitness, which is already . We are delighted that you'd like to resume your subscription. Hearkening back to the last major shock retailers faced . What a difference a year can make. The National Law Review is a free to use, no-log in database of legal and business articles. Still, can a brick-and-mortar retailer accomplish such a pivot without a bankruptcy filing? With our wide range of amenities and highly trained staff, we provide fun and effective workout options to family members of all ages and interests. H-2B Cap for Fiscal Year 2023 Is Met: A Supplemental Cap Increase As COVID-19 Emergency Waivers End, DEA Proposes to Expand Tele- How Employers Need to Prepare for the End of the COVID Public Health USPTO To Transition To Electronically Granted Patents In April 2023, Reductions in Force: Some High-Level Issues To Consider, CMS Streamlines Stark Law Self-Referral Disclosure Protocol (SRDP), The Alice Eligibility Two-Step Dance Continues, FTC is Talking Trash and Zeroing-in on Recyclable Claims, FTC Hosts Forum on Proposed Rule to Ban Noncompete Clauses. October 11, 2021. Although the company has slowly been opening stores, with shutdowns on the horizon, the company previously warned that it may need to file Chapter 11 to restructure its debt. The company had originally laid off 98% of its staff temporarily in March as a result of the financial strain from the pandemic, and closed locations to prevent the spread of the virus. Its Here The New National Cybersecurity Strategy. Body Tek Fitness Inc. filed for voluntary Chapter 11 bankruptcy protection April 19 in the Southern District of Florida. LA Fitness is a gym chain offering memberships to customers. Although it has used its good credit ratings and relatively little debt to stave off the filing, the question is how long can it endure. Shutterstock. 2019 sales were 3% below the prior year and with more than half a billion dollars in debt. Statement in compliance with Texas Rules of Professional Conduct. Nearly two-thirds of people who file for bankruptcy are married. In most cases landlords and tenants are working together to get through this adversity. Retail companies are still under strain. Already this year, some companies have come up short, and more are likely to follow. "Health club industry companies by revenue in the United States in 2020 (in million U.S. According to personal bankruptcy statistics, 64% of people who file for bankruptcy are married. [Online]. In April and May alone, the industry lost $5.5 billion in revenue. You may cancel your subscription at anytime by calling A bankruptcy seems inevitable. Across the board, retailers have faced tremendous disruptions to business in 2020. Use Ask Statista Research Service, U.S. fitness center / health club memberships 2000-2019, Number of U.S. health clubs & fitness centers 2008-2022, Percentage of U.S. population engaged in sports and exercise per day 2010-2021, U.S. health club industry revenue 2000-2020. While millions have already been vaccinated, with the number jumping every day, millions more are still avoiding offices, parties, travel and all manner of other social events. Cyc Fitness, a popular cycling studio chain owned by Cyc . . Currently, our team is providing value-added services to landlords in a number of Chapter 11 cases including: GNC, Stage Stores, Modells, 24 Hour Fitness, Sears, Guitar Centers, NPC, Toys R Us, Charming Charlie Part 2, and A&P. Two Days Mattered Most. According to New Generation Research, Inc.'s BankruptcyData.com, there were 6,691 commercial bankruptcy filings in 2021, compared to 11,375 in 2020 and 10,056 in 2019. Recent Insurance Company Failures In Louisiana. Citing people familiar with the matter, Bloomberg reports that the fitness chain is mulling raising new capital and negotiating with lenders to work out an agreement that would help the company navigate the . However,StockNewsreports that the companys pivot to focus on e-commerce has generated increased online sales of 80%, posting a profit of $0.50 per share. Despite the companys corner on the big and tall market, retail apparel is facing huge difficulties in the COVID-era. The Gap Fall Into Bankruptcy? So You're Green Prove It or Be Prosecuted: ACCC Sweep Finds 57 California Court of Appeal Addresses When Violations are Willful or Whats new in Belgium on the employment front? 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The Wall Street Journalreports that the privately held club obtained a $300 million loan from the governments Main Street Lending Program to try and weather the coronavirus pandemic. 24 Hour Fitness CEO Tony Ueber blamed the public health crisis, which has killed nearly 116,000 . Following is our top 10 retailers to watch for possible Chapter 11 filing(s) in the year ahead. The company looks poised for a Chapter 22 filing a second Chapter 11 bankruptcy within a few years of the first filing. Litigation Setback for Employers Under Illinois Biometric Information Senate Committee Holds Hearing on Future of Low Carbon Transportation North Carolina Senate Passes Compassionate Care Act at Exactly 4:20 States and Feds Signal Big Changes to Telehealth Prescribing. Brands are turning to naming strategies like spelling words incorrectly andcutting out vowels. $ + tax LA Fitness continues to seek innovative ways to enhance the physical and emotional well-being of our increasingly diverse membership base. In addition, the store product mix is more akin to the old Spensers Gifts, than a video game store. 10 Retailers to Watch for a Bankruptcy Filing in the Second Half of 2021. Christopher and Banks Tough Time for Womens Apparel. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. DC Circuit to Disputes Ancillary to Patent Matters: You Cant Sit Consumer Fraud PFAS Cases Continue To Rise. Confidentiality and Non-Disparagement Agreements with Non-Supervisory USCIS Confirms It Will Accept Employment-Based I-485 Applications New Jersey Enacts Bill of Rights for Temporary Workers, DOJ Implements Nationwide Voluntary Self-Disclosure Program. According to theBusiness Insider, a recent filing with the SEC stated that the company may seek a restructuring under the protection of applicable bankruptcy laws if its unable to raise sufficient additional capital. Although the company had 700 locations at the end of the second quarter, it is now closing roughly 20% (140 stores) by the end of this year. LA Fitness has lined up a $300 million loan from the governments Main Street Lending Program, which provides emergency loans to help small- and medium-size businesses affected by the coronavirus pandemic, said Robert Wilson, the gym operators general counsel. Bankruptcies in the United States averaged 42005.57 Companies from 1980 until 2022, reaching an all time high of 82446.00 Companies in the fourth quarter of 1987 and a record low of 12748.00 Companies in the second quarter of 2022. With our wide range of amenities and highly trained staff, we provide fun and effective workout options to family members of all ages and interests. Following is our top retailers to watch for possible Chapter 11 filing(s) in the year ahead: including Barnes & Noble, AMC, Regal Theaters, Francescas, LA Fitness, Bed, Bath & Beyond, Party City . Let Retail Dive's free newsletter keep you informed, straight from your inbox. Justice Department Announces Application Form for Marijuana Pardon Certificates, HERE IT IS: The Czars HUGE Breakdown of the FCC NPRM is NOW AVAILABLE to Everyone. The largest corporate bankruptcy in 2020 was Hertz Global Holdings Inc with $25.43 billion in assets when it filed, while 2021's has been offshore driller Seadrill Ltd, with $7.29 billion in . [Editors' Note: 5 p.m. EDT, April 2, 2020 - This story has been updated with a statement from LA Fitness about its efforts during the COVID-19 shutdown. Alex Murdaughs Trial Lasted Six Weeks. Jul 23, 2021. Thomas S. Onder is a Shareholder and member of the Commercial, Retail and Industrial Real Estate, Litigation and Bankruptcy & Creditors Rights Groups of Stark & Stark. "It Ain't Over 'Til It's Over" - Use Of A PTO Introduces Trademark Decisions and Proceedings Search Tool, FDA Issues Draft Guidance on Labeling of Plant-Based Milk Alternatives, Government Wins $43 Million Verdict in False Claims Act Case, BETO Will Host March 23 Listening Session on Next Billion-Ton Report. Visas for F and M Students Can Now Be Issued 365 Days Ahead of Program Start Date. According toCNBC, the U.S. office supply retailerannounced plans to cut about 13,100 jobs and close certain retail stores by the end of 2023. Nine West Footwear Company Walking into a Chapter 22? Ancient Antioch Survived Many Disasters in Its 2,400 YearsTurkeys Earthquake Obliterated It, Opinion: Yes, Theres a Housing Crisis. Topics covered: Retail advertising, social media, analytics, personalization, search, video, and more. retailers have filed for bankruptcy in 2021 so far: How years of investor-friendly finance left retailers vulnerable to crisis, 17 retailers that could go bankrupt as the COVID-19 era wears on. According to24/7WallSt.com, the company reported a second quarter net loss of $46.6 million. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. . Still, the heavy back rent, multiple locations, and other debt issues make the gym a perfect candidate for a Chapter 11 restructuring. You need at least a Starter Account to use this feature. The Future of Stablecoins, Crypto Staking and Custody of Digital White House Climate and Environmental Justice Screening Tool. "Health Club Industry Companies by Revenue in The United States in 2020 (in Million U.S. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 60m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Bankruptcies were particularly high in September 2021, at 179, due to the impact from the fifth wave of the . AG Clamps Down on Local Solar and Battery Storage Moratoria. The real estate sector led . The bankruptcy of Purdue Pharma was already political before a handful of Senate Democrats argued that its CEO shouldnt get a bonus the drugmaker wants to give. (October 11, 2021). NLRB Places New Limitations on Confidentiality and Non-Disparagement Settlement Will Benefit Many Aging-Out Children in the Green Card SEC Commissioner Discusses Reform to Regulation D, Massachusetts AG Settles Enforcement Action Against Auto Lender. a ch H Lang District H Lang, Cao Bang S in thoi:. View Details Cnn.com. Thomas S. Onder is a Shareholder and member of the Commercial, Retail and Industrial Real Estate, Litigation and Bankruptcy & Creditors Rights Groups of Stark & Stark. That can mean a lot of things, but it includes bankruptcy. Yet, can the company weather the pandemic and will its customers return?According toForbes, its on the list of specialty retailers to watch for a Chapter 11 filing. According toCrains New York, landlords are pursuing the private health club for more than $6 million in back rent. Friday, July 9, 2021 . You only have access to basic statistics. As part of the filing, the California-based company will permanently shutter all 55 of its locations nationwide. The failure of Louisiana insurance companies in the aftermath of a major hurricane is not unprecedented. How long can the company operate without filing for bankruptcy? This statistic shows health club companies in the United states by revenue in 2020. But it could just signal a return to normal. According toUSA Today, the private-equity-owned company has significant debt. About 22% of all participants with medical debts said the amount they owe falls within these thresholds. When was the last time you attended (in-person) a graduations, wedding, birthday, and/or sports celebrations? According to statistics provided by New Generation Research's bankruptcydata.com, as of the end of 2020, bankruptcies . A run of defaults looks almost inevitable. As part of the bankruptcy proceedings, the company said permanent closures are slated to affect only company-owned locations which comprise 10% of Gold Gym's 700 locations around the world and will not impact its franchises. According toShopping Center Business, Pet Valu announced a wind-down of its operations due to COVID-19.