Fitness Centers Sued Over Member Charges, As Coronavirus Threatens $30 Billion Gym Industry

Gym chain Town Sports International’s Boston Sports Club is getting sued for allegedly continuing to charge members despite closures—and failing to provide an easy cancellation option—after laying off all its Boston employee

For similar reasons, gyms around the country, like 24 Hour Fitness in San Diego and San Ramon, California, LA Fitness in Irvine, California, New York Sports Club in Manhattan, New York, face lawsuits.

Centers can be notoriously tough to keep clean: 63% of gym equipment is contaminated with viruses, especially rhinoviruses, which cause the common cold, according to a 2006 study by the Clinical Journal of Sports Medicine.

“If there’s a downturn, you can bet decadent workout packages will be one of the first things people ditch,” wrote a Bloomberg Opinion columnist in September 2019 before the pandemic, warning of trouble for expensive fitness boutiques like Barry’s Bootcamp and SoulCycle.

Cowen analyst Oliver Chen told Forbes he is optimistic that low-cost gym chain Planet Fitness will “emerge stronger” post-coronavirus pandemic due to its liquidity and brand positioning.

There’s a widespread movement for at-home workout innovation, with Peloton’s revenue growing 98% year-over-year, though at $2,000-plus per bike, Seeking Alpha warns that in the crowded virtual workout space, less expensive options may be more recession-proof.