24 Hour Fitness has filed for Chapter 11 bankruptcy, seeking restructuring with plans to close approximately 130 locations. This move was not unexpected. The CEO released a statement to members in April acknowledging the financial impact of COVID-19 on operations, in response to media reports that the company was considering seeking bankruptcy relief. At that time, I reached out to the developer of Art Place at Fort Totten to find out if they expected any impact on the opening of 24 Hour Fitness at Art Place. The developer stated that to their knowledge, plans for the 24 Hour Fitness at Art Place had not changed. The thinking was that the gym would seek reorganization and close some gyms, but newer facilities under construction would not be impacted.

The gym is supposed to anchor the first phase of Art Place in Building A. Residents know it has been a long slog to get the first phase of retail off the ground. X-Sport Fitness was originally slated to anchor the first phase, but that company had its own problems and could not make adequate progress towards opening, so the developer struck a deal with 24 Hour Fitness. Just when it looked like interior buildout for 24 Hour Fitness was finally making progress, the COVID-19 public health emergency hit.

I have reached out again now that the company has officially filed for bankruptcy relief to find out if there will be any impact to Art Place.