With 24 Hour Fitness on the brink of Bankruptcy - PTON is a buy

20 thg 4, 2020

As a result of COVID-19, gyms across the country have been forced to close. The effect of these closures are now being felt by 24 hour fitness, the nations second largest fitness chain. Reportedly, the company hired Lazard investment bank and Weil, Gotshal & manges law firm. As of March 16, the company held more than $1.3 billion in debt with less than $1 million in cash. While sources debate the gym may not ultimately file for bankruptcy, it begs the question of how the fitness industry will look after the virus passes. Americans, who once considered the gym part of their daily routine, have had to find alternative ways to stay active, while simultaneously savings $ on monthly gym dues. Although PTON comes with a hefty price tag, Americans are taking advantage of low interest barring credit cards and jumping aboard the peleton train. Additionally, its recent stock performance is indicating that the future of exercising may be from the comfort of your home.