In-Shape Health Clubs, Stockton, California, is looking at options for restructuring its debt, Bloomberg reported on Sept. 30.
The company’s owners, Fremont Private Holdings and Pulse Equity Partners LLC, are reviewing options that include selling the business, restructuring its debt or raising capital, according to the Bloomberg article. According to the article, In-Shape has debt of $70 million, which includes a $17 million revolving credit facility and a $53 million first-lien term loan.
A spokesperson for In-Shape said they were not prepared to comment on the Bloomberg article, but did share that as of Oct. 5, In-Shape has 22 clubs open in 11 counties, some open at 10 percent capacity indoors.
“We’re thrilled to be serving our communities at a time when exercise is more essential than ever for physical, mental and emotional wellbeing,” the spokesperson said. “We’re looking forward to being allowed to open more clubs soon.”
In-Shape, which prior to COVID-19 operated 60 clubs in California, is facing a situation similar to other clubs in California where gyms have been limited in their ability to reopen indoors.
Counties in California are color coded based on their COVID-19 positivity rate. Clubs in the purple tier, which is the highest tier, can only operate outdoors.
Under the red tier, which is the next lower level, gyms can open indoors but only at 10 percent capacity. In the next tier, orange, gyms can operate indoors at 25 percent capacity. In the yellow tier 50 capacity is allowed indoors.
In-Shape is part of the California Fitness Alliance (CFA), which sued the California governor in September seeking to lift some of the restrictions on indoor fitness. The CFA is urging for clubs to be allowed to open indoors in the purple tier at 25 percent capacity, increasing the capacity levels at all subsequent tiers.