Flywheel, SoulCycle competitor, files for bankruptcy
Flywheel Sports Inc. will close its studios following coronavirus shutdowns
CEO John Foley joins Liz Claman to discuss Peloton's patent protection strategy.
Brick-and-mortar gyms continue to spin their wheels.
Cycling studio Flywheel Sports filed for bankruptcy Monday as gyms and fitness chains continue to shutter brick-and-mortar locations during the pandemic.
Flywheel Sports filed for bankruptcy on Monday. (Flywheel Sports)
The New York City-based studio’s parent company, Flywheel Sports Inc., filed for Chapter 7 on Monday in New York and will close its doors after coronavirus-fueled studio shutdowns.
GOLD'S GYM FILES FOR BANKRUPTCY PROTECTION
The SoulCycle competitor offered in-studio group cycling and barre classes in cities like Boston, Seattle, Chicago and Washington. The news comes as a number of gym studios file for bankruptcy after being hit particularly hard by the pandemic.
New York Sports Club owner, Town Sports International Holdings Inc., filed for Chapter 11 bankruptcy Monday. Town Sports had a deal to acquire Flywheel Sports, combining both fitness chains, however, the operator backed out in April, according to Bloomberg.
Other gym chains like 24 Hour Fitness and Gold’s Gym have also filed for bankruptcy during the coronavirus.
PELOTON LAUNCHING CHEAPER TREADMILL, CUTTING BIKE PRICE
While brick-and-mortar gym chains continue to struggle to regain momentum, at-home fitness company Peloton last week lowered the price of its original stationary bike and is launching a cheaper treadmill to make it more accessible for consumers. The New York City-based company has seen orders skyrocket fueled by stay-at-home orders earlier in the year and with more people working remotely.
Like Peloton, Flywheel also sold stationary bikes for at-home workouts, however in February before the pandemic became widespread in the U.S., it pumped the brakes on its virtual classes after admitting to illegally ripping off Peloton. The company settled with Peloton over patent infringement the same month.
FLYWHEEL ADMITS IT COPIED PELOTON, WILL SHUT DOWN VIRTUAL CLASSES
While gyms have reopened around the country, many with limited capacity, group fitness classes are still not allowed to resume in New York City and are also running with restrictions in New Jersey.
Flywheel, which has been holding classes for a decade, had more than 40 fitness studios across the country.
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Flywheel did not immediately return a FOX Business request for comment.