Crunch Fitness Chain Files for Ch. 11 Bankruptcy

Crunch Fitness has filed for Chapter 11 bankruptcy and agreed to be bought out by its senior secured lenders.

AGT Crunch Acquisition, LLC, which operates a chain of 22 gyms in New York, San Francisco, Los Angeles, Miami, and Atlanta, attributed its financial troubles to declining memberships and expensive leases.

In a statement, Crunch said it plans to be acquired by New Evolution Fitness Co., certain affiliates of investment company Angelo, Gordon & Co., and possibly other bidders.  Crunch expects the deal to close in 60 days as long as the U.S. Bankruptcy Court in Manhattan gives its approval.

All but two of Crunch's 22 locations will remain open. The members of the two Manhattan locations that are closing will be transferred to other Crunch locations in the city.

Crunch lists assets between $100 million and $500 million, and liabilities in the same amount.  The company currently has 1,716 employees and 73,000 members.

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