Author Topic: CLUB - Town Sports International Holdings  (Read 20090 times)

cameronfen

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Re: CLUB - Town Sports International Holdings
« Reply #50 on: November 01, 2019, 01:30:23 PM »
I looked at this earlier this year and concluded that it was an overleveraged gym rollup that was underspending on maintenance capex. Exercise machines being abused and breaking is a fact of life in the gym business.

Gyms are a brutally competitive business, and they fail all the time. Planet Fitness, with its franchising and anti-gym  mentality, is the only company I know of that has figured out how to makes things work in the segment.

Doesn't change the fact that it can't be a ten bagger again (although I'm not involved).   


BG2008

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Re: CLUB - Town Sports International Holdings
« Reply #51 on: November 01, 2019, 03:23:13 PM »
Overtime, I've just decided to not go near companies without moats/advantages.  When the price goes down 50%, it's that much harder to back the truck up.  Without better company/business, it's much easier to back the truck up.

jckund

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Re: CLUB - Town Sports International Holdings
« Reply #52 on: March 31, 2020, 11:04:03 AM »
Any reason this stock isn't going to 0? Trading at $0.52, which implies a $16mm market cap. Currently unprofitable, all gyms shut down. CEO issuing letters refusing to refund people or honor cancellations until the gyms are back up and running. $182m of debt, $180m of which is coming due this year (August 14, November 15). Payroll and club operating costs outstripped membership dues! And they just made a ridiculous acquisition of Flywheel in January by raising an additional $50m 2L loan. Obscene... only escape is a Ch. 11.

given2invest

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Re: CLUB - Town Sports International Holdings
« Reply #53 on: March 31, 2020, 11:14:15 AM »
Yes it's a 0.   Flywheel never closed though and I doubt it will.   No way the seller puts up the mezz debt.   

Can you post the letter CEO sent about refusing to refund or honor cancellations?  I think that guy is a real 0.  Nonstop hype.  If you go to their website can see how they PR'd he won entreprenuerer of the year.  lol.   Just another HF manager who bit off more than he could chew.

Gregmal

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Re: CLUB - Town Sports International Holdings
« Reply #54 on: March 31, 2020, 11:50:18 AM »
There are a TON of setups like this one right now. People are just too busy worrying about boogie men to take advantage. Haven’t looked at options here, but I’ve seen plenty of these types were you can even hedge out an upside reversal with dirt cheap calls as well. Value investing is back

jckund

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Re: CLUB - Town Sports International Holdings
« Reply #55 on: March 31, 2020, 11:55:40 AM »
Yes it's a 0.   Flywheel never closed though and I doubt it will.   No way the seller puts up the mezz debt.   

Can you post the letter CEO sent about refusing to refund or honor cancellations?  I think that guy is a real 0.  Nonstop hype.  If you go to their website can see how they PR'd he won entreprenuerer of the year.  lol.   Just another HF manager who bit off more than he could chew.

Yup, here you go. I received it this morning (I'm a member in NYC).

"Dear Valued Member,

We hope you and your family are staying healthy and doing well.

I am reaching out to address the concerns members have expressed regarding membership dues. I want to reassure you that, as previously promised, we will issue credits to your accounts and address all membership-related concerns once our gyms are operating.

As of last Sunday, President Trump extended the national “shutdown” to April 30th. We want to ensure that we do all we can in order to keep our members healthy during this time. Therefore, as of April 1st, we will begin to offer a free, premium, exercise streaming service to all our members via the Plankk app.  The app includes more than 30 live classes per week including HIIT, Strength, Sculpt and Yoga classes. In addition, the app will allow us to feature your favorite trainers in streaming sessions.

In addition, we will be upgrading all members that stay active during the corona crisis closure to Passport- Elite memberships through the end of 2020, a value of $600-$700. This means unlimited access to all club locations including our luxury Elite brands at your current membership rate!  Members will be able to access more than 150 clubs when the economy reopens and we all get back to business.

The Town Sports team is working hard to navigate uncharted territory while we continue to plan for what may be a challenging future. We have made some extremely difficult decisions, but they are decisions that should ultimately benefit the Town Sports family, our members and our gyms.

We are working diligently behind the scenes to ensure we’re ready to accommodate our amazing staff and members when we reopen. It is our promise to you, that you’ll be welcomed back with a spectacular club experience. This promise, this goal, and our dedication to you and our staff inspires us to keep moving forward.

I have spoken to many of you personally over the past few weeks and want to thank you for your support and understanding.  We are looking forward to the day our doors open again and excited to see you back in the gym.

Until that time, be well, stay strong and be safe.

Sincerely,

Patrick Walsh

Chairman & CEO"

given2invest

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Re: CLUB - Town Sports International Holdings
« Reply #56 on: March 31, 2020, 01:19:40 PM »
I see people complaining on twitter.  He is nuts but he will do anything to save his equity.  What does he have to lose?  He doesn't care if brand is ruined for creditors. 

roark33

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Re: CLUB - Town Sports International Holdings
« Reply #57 on: March 31, 2020, 02:16:12 PM »
I can see landlords taking back those locations pretty quickly if CLUB doesn't pay rent.  Those are highly desirable locations throughout the big cities

roark33

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Re: CLUB - Town Sports International Holdings
« Reply #58 on: March 31, 2020, 09:03:45 PM »
The terms of the 2013 Senior Credit Facility, as amended, provide for a financial covenant in the situation where the total utilization of the revolving loan commitments exceeds 20%, or $3.0 million, of the aggregate amount of those commitments. In such event, TSI LLC is required to maintain a total leverage ratio, as defined in the 2013 Senior Credit Facility, of no greater than 4.00:1.00. As of December 31, 2019, TSI LLC had outstanding letters of credit of $2.4 million and a total leverage ratio that was below 4.00:1.00. Other than these outstanding letters of credit, TSI LLC did not have any amounts utilized on the 2013 Revolving Loan Facility. On March 13, 2020, we borrowed $12.5 million from the 2013 Revolving Loan Facility. We expect the total leverage ratio to be greater than 4.00:1.00 for the 12 months ending March 31, 2020.


Looks like they will breach their covenants today, and I wonder how long they can continue paying rent, i.e. beginning this week. 

Foreign Tuffett

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Re: CLUB - Town Sports International Holdings
« Reply #59 on: April 15, 2020, 10:42:32 AM »
Teetering on the brink of the Chapter 11 abyss

https://www.foxbusiness.com/lifestyle/coronavirus-prompts-new-york-sports-club-parent-town-sports-international-to-consider-chapter-11-bankruptcy-filing

Hopefully no one here owned this garbage barge. I learned what a poor business gyms are years ago when my "FT's All Nude Gym and Honky Tonk" start up failed after only a few weeks.