Gym chain 24 Hour Fitness has filed for Chapter 11 bankruptcy protection. The company said it will restructure and close more than 100 clubs that were out-of-date or in close proximity to another location.

Through the bankruptcy filing, 24 Hour Fitness said it will eliminate its debt to assume more financial flexibility so it can upgrade its equipment and improve its fitness offerings. The company also said the bankruptcy came as a result of a “disproportionate impact” of the coronavirus on its clubs, and if it were not for the COVID-19 pandemic, it would not have had to file for Chapter 11.

24 Hour Fitness is looking to secure $250 million in debtor-in-possession financing that will be combined with its cash on hand to continue to fund its operation. The company said this is expected to provide “sufficient liquidity” without interruption to its business.

24 Hour Fitness closed its gyms during the COVID-19 pandemic and is working to reopen locations in a phased approach. The company said it will reopen clubs nationwide as state and local guidelines allow.

Members of 24 Hour Fitness can expect little disruption in their gym membership, as the company said all members will have access to any available club under the chain, regardless of membership level through 2020. The company is also offering “Thank You Offers” for members that stick with the company during the restructuring process, including one-month dues credit, Buddy Pass for a year or 90-day Gift of Fitness for a friend or family member.

Employees of 24 Hour Fitness are expected to be paid all wages and benefits without interruption during the restructuring upon court approval. While some workers are still on furlough, 24 Hour Fitness said it cannot predict when these employees will be brought back, it will occur as it is allowed to reopen clubs. The company said it will communicate with its workers “openly and honestly” through the bankruptcy filing.

24 Hour Fitness 24 Hour Fitness is considering filing for bankruptcy. A customer works out at a 24 Hour Fitness center on July 31, 2012 in San Francisco, California. 24 Hour Fitness, the nation's largest privately held fitness center chain, was up for sale and fetch as much as $1.8 billion. Photo: Getty Images/Justin Sullivan