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Is 24 Hour Fitness Private Equity Owned?
🟡 FORMERLY PE OWNED
24 Hour Fitness
Includes 24Hour Fitness, 24 Hr Fitness
gym chain · San Ramon, CA
PE Firm
AEA Investors
Year Acquired
2014
“AEA Investors loaded it with $1.8 billion in debt. The workout was the bankruptcy filing.”
What Happened
- •AEA Investors and Ontario Teachers' Pension Plan bought 24 Hour Fitness in 2014 and loaded it with $1.8 billion in debt
- •Filed Chapter 11 in June 2020 and permanently closed 130+ gyms — over a quarter of its ~445 locations
- •Shrank from 445 locations to 286; workforce reduced by approximately 60% during restructuring
- •Eliminated $1.2 billion in debt by handing ownership to creditors including Sculptor Capital and Monarch Alternative Capital
The Damage Done
- ▸134 gyms permanently closed overnight — members showed up to locked doors with no refund and no notice in many cases
- ▸42 closures in California alone, 26 in Texas, 13 in Colorado — entire metro areas lost their nearest location
- ▸Members who'd prepaid annual memberships were left fighting for refunds — filing claims and waiting months with no guarantee they'd see a dime back
- ▸Annual renewal fees doubled or tripled after bankruptcy, breaking promises to customers who'd locked in fixed rates at sign-up
Sources
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Equinox
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Leonard Green & PartnersGet notified
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Frequently Asked Questions
Is 24 Hour Fitness owned by private equity?
Not anymore. 24 Hour Fitness was formerly owned by AEA Investors starting in 2014, but the firm has since exited. The effects of PE ownership often linger.
What happened to 24 Hour Fitness after the acquisition?
134 gyms permanently closed overnight — members showed up to locked doors with no refund and no notice in many cases 42 closures in California alone, 26 in Texas, 13 in Colorado — entire metro areas lost their nearest location
Who owns 24 Hour Fitness?
24 Hour Fitness is owned by AEA Investors, which acquired it in 2014.