Fitness club operator bankruptcies reached 23 through July this year and could reach 40 for the full year. Intensifying competition to attract members, along with rising labor and utility costs, is driving up the number of bankruptcies.
Fitness club bankruptcies reached 23 as of July this year, exceeding the figure for the same period last year and running at a record pace. There are indications that the number could reach 40 for the full year.
Campaigns such as waiving membership fees and offering special discounts amid intensifying competition have made it difficult to secure sales, while low member retention rates are also a contributing factor.
Rising labor costs due to labor shortages and higher utility costs resulting from increased energy prices are also placing a significant burden on operators and contributing to the bankruptcies.