Who didn’t see this one coming?
Town Sports International, the owner of Boston Sports Clubs including the Wellesley location abutting Babson College’s campus, has filed for Chapter 11 bankruptcy protection. The Wellesley club is often cited by members for making it very difficult for them to curtail memberships. Attorney General Maura Healey went after the business to get it to stop charging people while it was closed during the pandemic.
According to the court filing, Babson is owed more than $1M by TSI, though the claim is listed as contingent and disputed.
In its filing, TSI says it “intends to use the Chapter 11 process to engage in further discussions with their landlords and other creditors to successfully restructure their debts to best position the Company for long-term success in the current fitness industry environment.” It insists that the businesses that can open under local COVID-19 guidelines will remain open.
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