Flywheel filed forChapter 7 bankruptcy and will permanently close all 42 of its studios while laying off 1,200 employees, according to court documents filed on Tuesday.- The filing comes after several former employees first too to social media on Monday to share they no longer held jobs at the company.
- Flywheel previously laid off 98% of its staff temporarily in March due to the financial impact of closing studios for in-person classes to prevent the spread of the
coronavirus . - The company joins a $4 that filed for
bankruptcy in recent months as a result of the coronavirus outbreak, including Gold's Gym, 24 HourFitness , and YogaWorks.
Flywheel Sports — a chain of
The filing comes after several former employees $4 on Monday to share they no longer held jobs at the company, prompting an outpouring of support from loyal riders and Flywheel enthusiasts. The company joins a $4 that filed for bankruptcy in recent months as a result of the coronavirus outbreak, including Gold's Gym, 24 Hour Fitness, and YogaWorks.
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According to documents filed Tuesday with the US Bankruptcy Court for the Southern District of New York, Flywheel has estimated assets of no more than just $50,000 and estimated liabilities of between $10-50 million.
Representatives for Flywheel did not immediately return Business Insider's request to comment.
Founded in 2010, Flywheel grew quickly over the past decade thanks to the boutique fitness boom and the resurgence of stationary cycling. By the time it filed for bankruptcy, it had 1,200 employees and 42 locations in California, Colorado, Florida, Georgia, Illinois, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Washington state, and Washington, DC.
A source close to the matter $4y that most instructors learned they were being laid off after seeing colleagues post about it on social media. The same source said they first heard Flywheel was permanently closing its doors after receiving and Instagram message from a friend who said they worked at Flywheel Sports' headquarters and was laid off on September 11.
Flywheel previously $4 in March due to the financial impact of closing studios for in-person classes to prevent the spread of the virus. Though the company sought out alternative revenue streams such as streaming classes and selling or renting bikes and gear, it ultimately wasn't enough to prevent the company's demise.
Prior to the bankruptcy, Flywheel had been in talks with Town Sports International — the parent company of New York Sports Clubs and Boston Sports Clubs, among other fitness chains — for a possible merger that would have saved the spinning company. However, its hopes were ultimately dashed when $4 on Monday.
"With its official closing, I'm taking all the memories (good and bad!), lessons, friends, bad playlists, noise complaints, vocal issues, and amazing clients and friends into the next chapter," former Flywheel instructor Kate Hickl $4. "Thank you Flywheel for everything."