Loss of $7 billion, 490000 people unemployed

 Loss of $7 billion, 490000 people unemployed

CCTV news reports novel coronavirus pneumonia has been hit by the outbreak of the new crown pneumonia epidemic in the United States, according to Fawkes website.

Chris creto, a board member of the International Association of health, sports and fitness clubs, said on the 25th that the U.S. fitness industry has been hit hard by the epidemic and the U.S. government has not provided any relief measures. Kraito told the media that he had written a letter of help to the U.S. government, hoping to get small loans from the government for small and medium-sized enterprises during the outbreak. He also said that without government help, 25% of the fitness companies in the United States are expected to close permanently this year.

The letter also said that as of July 1, the U.S. fitness industry had lost $7 billion in revenue, with 489000 fitness workers out of work in Michigan, New York, Washington and California due to the state governments forced closure. If fitness centers in Texas and Florida are closed again due to the rebound of the epidemic, it is estimated that there will be another 280000 employees in these states Unemployment.

Will the American fitness industry face the tide of bankruptcy?

Gold sgym, an American fitness brand, was recently acquired by a German fitness company after going through bankruptcy and reorganization, according to Dahe news. During the outbreak, many American chain gyms have declared bankruptcy or are considering bankruptcy or layoffs. The industry is worried that the long-term suspension will have a devastating impact on the fitness industry, and about 80% of gyms may be closed permanently.

It is reported that golds gym has previously cooperated with gyms around the world, focusing on three modes of self operation, franchise and franchise. Now, it has more than 600 cooperative gyms in 29 countries and regions, 61 self owned gyms, and hundreds of thousands of employees. It provides services to millions of people in six continents every day. According to the bankruptcy documents, golds gym has $100 million in debt.

This is not the first American gym chain to apply for bankruptcy protection since the outbreak. According to Sina Financial News, on June 15, according to a court document, 24 hour fitness, a famous American fitness brand, has applied for bankruptcy protection in Delaware under Chapter 11 of the U.S. bankruptcy law. The companys estimated liabilities are between $1 billion and $10 billion.

Meanwhile, town sports international, a large US gym operator, is considering bankruptcy, with four offline fitness brands, including New York sports clubs. Even gyms, including equinox fitness, have announced that their rental properties have been suspended to maintain their operations.

Daily economic news comprehensive CCTV news, Dahe news, sina finance and Economics

Source: Cao Liqiao, editor in charge of daily economic news_ NS1806