Mad Fitness Group LLC, which operates 31 F45 Training studios across Maryland, Florida, Georgia, Virginia, Kansas and Missouri, has filed for bankruptcy protection with plans to close about half of its locations
According to the filing in U.S. Bankruptcy Court for the Southern District of Florida, Mad Fitness listed between $100,000 and $500,000 in assets and liabilities. The bankruptcy filing was attributed to aggressive expansion during F45’s rapid growth as a public company, including higher rent and construction costs linked to the construction of larger studios. The franchisor also cited membership-billing errors that enabled members to use the gyms for free or continually tap introductory discounts.
The filings do not involve F45 Training Incorporated, the franchisor, which has not filed for bankruptcy.
Image courtesy F45 Training
