24 Hour Fitness Successfully Emerges from Financial Restructuring

On December 30, 2020, 24 Hour Fitness successfully emerged from the chapter 11 process. Our financial restructuring is now complete, and we are excited to be moving into 2021 as a strong and forward-looking company.

With a leaner balance sheet, optimized cost structure, and significantly reduced debt, we are now able to focus squarely on our mission to transform lives every day through fitness.

As a fitness industry leader, 24 Hour Fitness has built a brand designed for everyone – whether exploring the gym for the first time or experienced at setting and smashing through fitness goals. Our passionate professionals and engaged club communities are here to accompany our members on their journey regardless of their fitness level. At a time when access to fitness is more important than ever, members will continue to be able to use any open 24 Hour Fitness club, regardless of membership level, through March 2021.

As a reminder, we have reimagined the club experience and continue to strictly follow local and state government and public health agency guidelines to ensure the safety of our team and club members; you can learn more about the club environment here.

While we reopen clubs, all members will have access to any available 24 Hour Fitness club through March of 2021, regardless of membership level. For updates and further news about our phased club reopenings and locations, please visit us at here.

We remain deeply grateful for your continued loyalty to 24 Hour Fitness. We are excited to continue supporting you along your fitness journey well into the future.

Frequently Asked Questions

General Information

What are you announcing?

• 24 Hour Fitness (the "Company") has successfully emerged from chapter 11 following confirmation of our plan of reorganization (the "Plan") on December 21st

What is the significance of this milestone?

• This is the final step of 24 Hour Fitness’ financial restructuring process.
• This important milestone reinforces the strength and promise of 24 Hour Fitness’ business strategy and our long-term future. Most importantly, it ensures that we will continue long into the future to deliver on our mission of helping to transform lives through fitness

What is the latest status of your clubs?

• 24 Hour Fitness is managing its network of nearly 300 clubs while monitoring state and local government and public health agency guidelines to ensure the delivery of an optimum fitness experience.
• All club members will continue to have access to any open 24 Hour Fitness club, regardless of membership level, through March 2021
• To see current club status, please visit us at https://www.24hourfitness.com/health_clubs/find-a-gym/.

As the COVID-19 pandemic rages on, how can you be certain the business won’t slide back into financial trouble?

• 24 Hour Fitness has a strong brand with millions of loyal customers.
• Upon emergence from chapter 11, we expect to operate with an optimized cost structure, leaner balance sheet, and improved real estate footprint that position us favorably to weather the COVID-19 pandemic.
• The COVID-19 environment has proven that fitness is more important now than ever before.
• Further, we are encouraged by the promise of a vaccine that will eventually allow us to re-open our clubs and increase the momentum we have been building.

Where can I ask questions or get more information?

• You can visit our website, https://www.24hourfitness.com/restructure, for more information. You can also submit questions in the Contact Us portion of our website.
• Media inquiries should be directed to our Media Hotline at (866) 819-7414.
• Property management inquiries should be directed to leaseinquiries@24hourfit.com.
• Questions about claims can emailed to 24hourfitnessinfo@PrimeClerk.com or you can call one of the following numbers:
• Toll Free (U.S. & Canada): (877) 606-3612
• Local Toll (International): (949) 635-4482

Club Members

What does this mean for my club membership?

• This important milestone reinforces the strength and promise of 24 Hour Fitness’ business strategy and long-term future. Most importantly, it ensures that we will continue our mission of helping to transform lives through fitness.
• And all club members will continue to have access to any open 24 Hour Fitness club, regardless of membership level, through March 2021.
• Please know that we will also continue to invest in innovative fitness technologies and wellness options to enhance your fitness experience—both inside and outside the club with 24GO®, 24GO Plus and 24GO TV™ through the 24 Hour Fitness® workout channel on YouTube, among other virtual fitness offerings.

Are you offering any digital or online programs while clubs are closed indoors?

• Yes, club members can continue to engage with our content and workout options through 24GO®24GO Plus™ and the 24GO TV™ workout channel on YouTube, among other virtual fitness offerings. Learn more online here.
• We also recently introduced OUTDOORS@24, offering outdoor cardio and weight training at select locations. Find out more details here.

Which 24 Hour Fitness clubs have reopened or will soon reopen?

• 24 Hour Fitness is open and welcoming members in many locations. More details are online here.
• Note that as we continue reopen our clubs, we are carefully following state and local government and public health agency guidelines to keep our team members, club members and guests healthy and safe.

If my club has not reopened, can I use another location?

• All club members will continue to have access to any open 24 Hour Fitness club, regardless of membership level, through March 2021.

Where can I get more club member information?

• Please visit our website at 24hourfitness.com for more information. Thank you for your patience with our Member Services Department as we work to respond to your inquiries as quickly as possible.
• For our club locations that are open for either indoor or outdoor operations, you can call or visit a club to speak to one of our team members who will be happy to assist.

What if I want to change my membership status?

• Please visit the Contact Us portion of our website to submit your request.
• For our club locations that are open for either indoor or outdoor operations, you can call or visit a club to speak to one of our team members who will be happy to assist.

Team Members

What does this mean for me?

• 24 Hour Fitness has successfully emerged from our financial restructuring as a stronger company.

Will there be any further layoffs?

• While nothing is determined at this time, as the COVID-19 pandemic evolves, we will continue to communicate with you openly and honestly.
• We believe our restructuring points us in the right direction for long-term success so that we can focus on delivering a great club experience, reinvesting in our existing clubs and providing innovative fitness and technology solutions to meet member needs. As always, we will continuously look for opportunities to operate more efficiently to ensure our long-term success.

When will the furloughed team members be brought back to work in the clubs and corporate offices?

• We can’t predict when our furloughed team members will be brought back to work.
• As we are able to continue reopening our clubs, furloughed team members will be brought back.
• We are encouraged by the promise of a vaccine that will eventually allow us to re-open our clubs and increase the momentum we have been building upon.

Where can furloughed team members go to find more information about how this Confirmation milestone of our restructure affects them?

• We ask that you speak directly to your line manager to understand more about this announcement.
• You can also visit https://www.24hourfitness.com/restructure.

Where can I get more team member information about this process?

• The Company is committed to keeping team members informed throughout this process. We will continue to host town hall meetings and provide updates via email. You may also refer to the employee intranet for any updated information.

Vendors

How will the emergence affect vendor relationships with 24 Hour Fitness?

• We have completed our financial restructuring and there will be no further impact on our vendors.

Are you now on solid financial footing to continue operations?

• •Yes, the Company is operating with an optimized cost structure, leaner balance sheet, and improved real estate footprint after eliminating $1.2 billion in funded debt.

Will vendors be paid for goods and services provided after your chapter 11 petition date?

• Invoices submitted after the chapter 11 filing will be paid in the ordinary course of business.

What is the status of my claim? How can I check?

• You can review your claim status at htps://restructuring.primeclerk.com/24hourfitness.

Who can I speak with to get more information?

• The company’s claims agent has an information line to answer questions about this announcement. The information line can be reached by calling (877) 606-3612 (toll free in the U.S. and Canada) or +1 (949) 635-4482 (international). Or you may email questions to: 24hourfitnessinfo@PrimeClerk.com.
• Court filings and other information related to the bankruptcy cases are available at a website administered by the Company’s claims agent, Prime Clerk, at https://restructuring.primeclerk.com/24hourfitness.

More Information

How can I locate and follow the bankruptcy cases?

• Information on the Court bankruptcy cases can be found at https://restructuring.primeclerk.com/24hourfitness.

Media

Inquiries?

• Media seeking more information should contact our Media Hotline at (866) 819-7414

Social Care

What will I receive as compensation for my claim?

• To view your claim and the treatment it will receive, you can get a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness. You can also find an FAQ for questions about treatment of your claim under the Plan.

I prepaid for this year’s membership. Will I be reimbursed for any unused portion?

• For time paid while clubs were closed in your area, Prepaid Renewal members will have a prorated credit added to their account. Limited Term members will have their memberships extended for the same period of time paid for while clubs in your area were closed.

Is my membership going to change?

• If you have an active membership nothing will change.

Is my [prepaid or limited term] membership still valid?

• Yes. Prepaid Renewal members will have a prorated credit added to their account. Limited Term members will have their memberships extended for the same period of time paid for while clubs in your area were closed.

I prepaid for personal training sessions. Will I be reimbursed for any unused portion?

• Personal Training agreements have been extended for the time clubs in your area were or continue to be closed. Members also have the option to use their sessions virtually.

My club has closed and there are no alternate clubs near me. Will I be reimbursed for my membership or unused personal training sessions?

• For more information regarding on how and when to file a claim for a payment or purchase made prior to June 15, please visit https://restructuring.primeclerk.com/24hourfitness. For payments or purchases made after June 15, please contact socialsupport@24hourfit.com so we can connect you to someone to assist.

What’s the status of my claim? When can I expect to hear?

• Information about your claim was sent to the mailing address you provided. To view your claim and the treatment it will receive, you can get a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.

Can I still file a claim?

• Visit https://restructuring.primeclerk.com/24hourfitness for information about the claims process.

When will I get my gift card?

• We appreciate your patience with the Chapter 11 process. We expect to begin mailing or emailing gift cards sometime in the coming months.

How did you come up with this compensation?

• Treatment of member claims resulted from a comprehensive review of all claims filed during the Chapter 11 process, and the treatment was approved by the bankruptcy court.

I’m a vendor:

Can I still file a claim?

• Visit https://restructuring.primeclerk.com/24hourfitness for information about the claims process.

I’m also a member. Are vendor claims being settled the same way as member claims?

• To view your claim and the treatment it will receive, you can obtain a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.

When will I hear the status of my claim?

• Information about your claim was sent to the mailing address you provided. To view your claim and the treatment it will receive, you can get a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.

Why am I getting a gift card and not a check?

• The type of recovery you will receive depends on the type of claim you hold. To view your claim and the treatment it will receive, you can obtain a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.

When will I get it?

• We appreciate your patience with the Chapter 11 process. We expect to begin mailing gift cards making distributions sometime in the coming months.

I’m a (former/current) team member:

Can I still file a claim?

• Visit https://restructuring.primeclerk.com/24hourfitness for information about the claims process.

When will I find out the status of my claim?

• Information about your claim was sent to the mailing address you provided. To view your claim and the treatment it will receive, you can get a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.

When will I receive payment on account of my claim?

• We appreciate your patience with the Chapter 11 process. We expect to begin making distributions in the coming months.

Are you paying employees’ claims in full? OR I heard that employees are not being made whole – why not?

• The amount of your recovery depends on the type of claim you hold. To view your claim and the treatment it will receive, you can obtain a copy of the Plan at https://restructuring.primeclerk.com/24hourfitness.