Struggling to Rebound Due to Debt and Closures
As a result of turbulent times for LA Fitness, a subsidiary of Fitness International LLC (Fitness International), since 2020, Moody’s announced in November of 2021 that it was cutting the company’s credit rating. Due to LA Fitness’ $1.7 billion of debt that it carries as well as the announcement that it was shutting down gyms in California and Arizona for a second time since COVID-19 (coronavirus), there remains significant doubt on whether or not the company can get out of financial trouble moving forward.
COVID|Balance Sheet|Discontinued ActivityIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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