A popular gym franchisee that operates fitness studios across six states has filed for Chapter 11 bankruptcy
Mad Fitness Group LLC, which runs venues in 31 locations including Atlanta and Baltimore, submitted the petition Sunday
It is the latest in a series of chains to have run into economic trouble in the current climate, with recent closures hitting a slew of U.S. industries, including retail, fast-food and nightlife
Mad Fitness is a franchisee of F45 Training, which runs studios across the United Statesand in 47 countries around the world. However, F45 Training itself has not filed for bankruptcy
A Chapter 11 filing allows a debtor to propose a plan which would allow it to reorganize in order to keep its business alive and pay its creditors, per the United States Courts
In the filing obtained by The Street, Mad Fitness listed between $100,000 and $500,000 in assets and liabilities
The bankruptcy announcement appears to buck the general trend for the fitness sector. Earlier this year, a report in the Wall Street Journal found that the U.S. now has more gyms and spas than retail outlets for the first time
And in February gym chain Planet Fitness announced plans to open nearly 200 new clubs this year
Nevertheless, many businesses have found it difficult to survive as consumers face tough choices about where to spend their dollars
Dueling Axes, a chain of axe-throwing sports bars, abruptly closed all five of its stores at the end of July while seafood chain Long John Silver’s has closed almost half of its stores in recent years
The Labor Department reported that employers unexpectedly cut 23,000 jobs in July,after 103,000 additional jobs were cut from payrolls in May and June
Fifty-thousand positions in public schools were lost, with restaurants and bars deciding to cut 26,000. Meanwhile, retailers reduced their number of staff by 19,000
The Independenthas contacted MaD Fitness Group for comment
