Earlier this month, gyms reopened in 30 states across the country as stay-at-home advisories shifted. But, according to our data, people aren’t showing up yet, and the fitness industry is already starting to see a change.
24 Hour Fitness ($24HOURFITNESS) announced it is filing for Chapter 11 bankruptcy and closing over 130 gym locations around America largely due to the Coronavirus pandemic. 24HF expects to secure $250 million in debtor-in-possession financing to continue operations and reopen its remaining gyms.
This is definitely bad news for 24 Hour Fitness, and its members, but some of its competitors could benefit from the company’s misfortune. There’s an average of two Planet Fitness ($NYSE:PLNT) locations within five miles of every 24 Hour Fitness. Of course, operating at about 2,000 locations, Planet Fitness already has a leg up on its soon-to-be-former-competitor.
There are only 300 some 24HF locations remaining, concentrated around parts of New York, DC, Florida, Texas, Oregon, Washington, and California. Planet Fitness has locations in all of these areas, so 24 Hour Fitness loyalists will have plenty of options in their gym’s absence.
There are 152 Planet Fitness locations in California alone. Florida has 132 Planet Fitness gyms and 20 24 Hour Fitness locations. In New York, there are 121 Planet Fitnesses and 17 24HF gyms.
Smaller gym chains, like Crunch ($CRUNCHFITNESS), will also see some new customers in places like Florida, New York, possibly LA, and definitely New Jersey. There’s about one Crunch Fitness within five miles of every 24HF, except in New Jersey, where there are two Crunch locations within five miles of every 24HF.
Both Crunch and Planet Fitness have plans to reopen as soon as this week with new safety measures like regular sanitization and temperature checks. 24 Hour Fitness locations are expected to reopen by the end of June with a new workout reservation system and social distancing protocols. But, as people slowly return to the gym and explore their other exercise options, 24 Hour Fitness could run out of time to turn things around.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales, and app ratings - and creates data sets that measure factors like hiring, revenue, and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.