Crunch Fitness, a gym operator with 73,000 members and clubs in six U.S. cities, filed for bankruptcy protection from creditors in New York, citing slowing membership and overpriced leases for some locations.
The petition for Chapter 11 protection filed in Manhattan today listed $102.4 million in both assets and debts, according to a March 31 balance sheet. The company has asked the court for more time to file a final list of assets and debts, citing “limited resources” to evaluate its books.
AGT Crunch Acquisition LLC filed for court protection, along with affiliate clubs in New York, Miami, Chicago, Los Angeles, Atlanta and San Francisco.
Crunch seeks to sell its assets through an auction under court protection, to New Evolution Fitness Company, formed by CH Fitness, a joint venture of entities formed by New York-based fund manager Angelo, Gordon & Co., and a private equity fund called NEFC Crunch, according to court filings.
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