In-Shape Health Clubs has closed two of its three Tracy locations after nearly 10 months of COVID-19 shutdowns.
The shutdowns come as In-Shape files for Chapter 11 protection. In a statement released last week, the Stockton-based company said that COVID-19 shutdowns have affected the company’s revenues. In-Shape has permanently closed 20 of its clubs across California, but plans to maintain 45 to 50 clubs after its Chapter 11 restructuring is complete.
The company filed for Chapter 11 in the United States Bankruptcy Court, District of Delaware, on Dec. 16. In the voluntary petition for Chapter 11, the company declared that it has between $100 million and $500 million in liabilities and between $50 million to $100 million in assets. Creditors listed on the form include mostly landlords making claims against the company.
The company will maintain its club at 101 S. Tracy Blvd., which includes indoor and outdoor swimming pools and outdoor tennis courts. That club is presently open and operating as an outdoor fitness center, with the company observing strict COVID-19 protocols.
The gyms at 239 W. 11th St. and 2311 N. Tracy Blvd. have both closed, with all equipment removed.
In-Shape CEO Francesca Schuler said in the company’s statement that the 40-year-old company plans to stay active in its community for many years to come.
“Restructuring provides a clear path forward. It should allow us to emerge as a strong company with a committed, passionate team delivering a great fitness experience for our loyal members, while enabling continued future expansion and growth,” Schuler said.
Former In-Shape CEO Paul Rothbard, who has 25 years of experience leading the company, plans to purchase the company through his new company, Solutions Investment Group, pending approval from the bankruptcy court.
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