Crunch is filing for Chapter 11 bankruptcy, so soon we'll have an airtight excuse for why we're fat. Or will we? According to the Wall Street Journal, the deal arranged by Crunch would allow it to be acquired by two private-equity firms and only have to close just one of 30 locations—the one on the chopping block is down by the bottom of Broadway (and it's apparently already closed, according to a reader; see below), near Bowling Green. Crunch execs are blaming the company's poor health on weak membership sales and a number of unprofitable club locations that have "overpriced long-term leases." They're also furious with Bally's Total Fitness for allegedly misrepresenting the number of active members before Crunch bought 25 Ballys in 2006.
In a statement, Crunch Chief Executive Tim Miller said that the bankruptcy and restructuring will enable Crunch to get back to "what we have become famous for: being the place where entertainment meets fitness." Lately Crunch has been more famous for owing landlords big moneys; Crain's reports that the company currently has 50,000 creditors and $102.4 million in debt.
And from a reader:
Just wanted to let you know Crunch filed for bankruptcy...
They also moved their 29 Broadway location to 90 John St., which was a Golds Gym until yesterday. They didn't notify anyone about this! You had to walk up to their storefront at 29 Broadway and see the sign...
I also spoke to a Yoga instructor at the "new Crunch" who has been working there when it was Gold's Gym. He didn't find out about the change until he came in yesterday morning to teach his regularly scheduled class, only to find out he doesn't have a class anymore!
Needless to say, a lot of people (my coworkers and other people I overheard complaining at the new location) are pissed that they picked up and moved without informing anybody. The lady at the front desk told a guy they emailed customers, which is complete bullshit.
They also had to know about this way in advance since I checked the site yesterday morning after finding out. The 29 Broadway location mysteriously disappeared, replaced with the new 90 John Street location, pics and all! Unbelievable.