In-Shape Health Clubs Files for Chapter 11 Restructuring

In-Shape Health Clubs, Bakersfield, California, filed for Chapter 11 restructuring on Dec. 16, according to the company.

In-Shape CEO Francesca Schuler shared a message on the company’s website stating that the shutdown of health clubs in California for much of 2020 due to the COVID-19 pandemic led to the bankruptcy filing. The company plans to restructure and move forward with reopening clubs once the state allows it to do so.

“I want to reassure you that In-Shape is not going anywhere,” Schuler said in the message. “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.”

In-Shape lists 47 locations in California on its website. Seventeen of those locations are noted as being open for outdoor fitness. The rest of the clubs are listed as temporarily closed due to COVID-19. 

California has in place a four-tiered system to handle COVID-19. In Tier 1, which is the most restrictive tier, gyms are only allowed to operate outdoors. In Tier 2, gyms can open indoors but are limited to a capacity of 10 percent with climbing walls allowed to reopen. In Tier 3, indoor fitness can occur at a maximum capacity of 25 percent and indoor pools can reopen. In Tier 4, indoor operations are allowed at gyms at 50 percent capacity, and saunas and steam rooms can reopen.

Much of California is in Tier 1 or Tier 2.

In-Shape's Chapter 11 filing was made in the U.S. Bankruptcy Court District of Delaware.

In-Shape is the latest health club company to file for Chapter 11 due to shutdown of health clubs because of the COVID-19 pandemic. Other companies that have filed for Chapter 11 include Gold’s Gym, 24 Hour FitnessTown Sports International (which operates New York Sports Clubs among others), YouFitYogaWorks and Cyc FitnessFlywheel filed for Chapter 7 and closed all of its studios.