YogaWorks has filed for Chapter 11 bankruptcy protection and has permanently closed all its studios but will continue to offer digital and live-stream content.

As part of the Chapter 11 process, YogaWorks entered into a purchase agreement with Serene Investment Management. Serene will serve as the stalking-horse bidder and has agreed to acquire the YogaWorks digital and education business and intellectual property. Serene has also provided a commitment for debtor-in-possession financing that will offer enough liquidity to support YogaWorks through the reorganization.

Under the direction of its existing management team, YogaWorks will continue offering its live-stream and on-demand digital platforms, YogaWorks Live and MyYogaWorks, as well as its teacher training and workshop departments. YogaWorks has more than 40 livestreaming classes and more than 1,000 pre-recorded classes and workshops. Employees will continue with their work and receive pay and benefits as usual.

“After considering a number of alternatives to overcome the financial challenge of the studio closures, we determined that implementing an orderly restructuring process is in the best interest of all of our key stakeholders, most notably our dedicated teachers and passionate students,” Brian Cooper, CEO of YogaWorks, said in the statement. “With the improved financial flexibility provided through this process, we will continue to build upon the strengths of our digital and educational platforms, both of which have proven to be successful and have experienced significant growth over the course of the past several months.”