Owner of Philadelphia Sports Clubs files for bankruptcy

The owners of the Philadelphia Sports Clubs, which has three gyms in the city and one in the suburbs, filed for Chapter 11 bankruptcy protection on Monday.

PSC's parent company, Town Sports International Holdings, also operates a number of health and fitness centers in the Northeast, as well as in California and Switzerland. Some of its other brands include New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs, Lucille Roberts, Total Woman, and Around the Clock Fitness.

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There are PSC locations in Society Hill, Center City and Franklintown in Philadelphia and Chalfont, Bucks County.

Town Sports International said it fitness centers are not going out of business, and the company will use the bankruptcy protection process to restructure the company "for long-term success in the current fitness industry environment."

Facilities will continue to operate as usual and members will not see any changes in service, the company said. Investments to upgrade facilities and purchase new equipment will be taken care of as needed at clubs that have been cleared to resume operations amid the COVID-19 pandemic. 

Town Sports International said the "service and attention you receive from us will be better and positive as a result" of the bankruptcy process.

"Restructuring is the best way to properly respond to the COVID-19 pandemic, with the long-term goal to emerge as a thriving powerhouse in the fitness industry," the company said in a statement released Monday. "The goal is to emerge from Chapter 11 as an even stronger company, better positioned to serve members into the future." 

PSC members were informed in an email on Sunday night that they will be receiving 45 days of credit towards their memberships dues and ancillary services.

This is intended offset charges for the period where the clubs were shut down in March and April because of the COVID-19 pandemic. Membership dues were frozen starting in May and did not resume until the clubs reopened in July after Philly permitted fitness centers to restart operations.

"PSC is honoring that commitment now. We want to demonstrate that although times have been difficult we will move our business and brand forward in a positive direction. Our goal is to ensure member satisfaction at PSC."