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Fitlab filed for Chapter 11 bankruptcy protection in Delaware, estimating liabilities of $100 million to $500 million, assets of $10 million to $50 million and 1,000 to 5,000 creditors. The filing follows the closure of Y7’s studios and Nike Studios’ shutdown; Ragnar’s CEO says a new investor group is funding events as it moves toward acquiring the race series.
Fitlab, the fitness holding company behind yoga chain Y7 and the Ragnar relay race series, filed for Chapter 11 bankruptcy protection in Delaware this week, reporting estimated liabilities of $100 million to $500 million. The filing follows the closure of Y7’s physical studios and the shutdown of Nike Studios, while Ragnar is moving toward a change in ownership.
In its petition to the U.S. Bankruptcy Court for the District of Delaware, Fitlab estimated its assets at $10 million to $50 million and listed between 1,000 and 5,000 creditors. Those figures are estimates reported in the filing; the ranges do not establish the final value of the company’s assets or the amount each creditor may recover. Chapter 11 allows a business to seek court-supervised restructuring, though the filing alone does not show what assets or operations will remain.
The petition came weeks after Y7 closed all of its physical studios. Founder Sarah Larson Levey wrote in a Sept. 16 Substack post that the studios went dark in late August and September, with the last location closing by Sept. 11. Fitlab acquired Y7 in late 2024. Levey told Athletech News the sale was intended to fund franchising and said the chain was generating $10 million in annual revenue and $1.2 million in consolidated EBITDA when she sold it. Those financial figures are her account, not details established by the bankruptcy filing.
Fitlab’s portfolio also included Assault Fitness, RPM Training and XPT, as well as the now-defunct Mile High Run Club, Racked and Nike Studios. Nike Studios opened in 2023 and ceased operations in March, according to Athletech News. The status of each Fitlab brand and business during the Chapter 11 process was not specified in the supplied report.
The Impact on Fitlab’s Brands
The filing puts the future of a group of fitness and wellness businesses into a court-supervised process, but it does not by itself mean every Fitlab brand will close. For customers, participants and creditors, the central issue is which operations can continue and how the company will address its debts. Fitlab’s reported liability range is substantially higher than its stated asset range, though the estimates are broad and do not spell out the eventual financial outcome.
Y7’s studio closures have already ended its in-person locations, according to the report, while Ragnar’s status appears different: its CEO says a new investor group has funded events and is working toward an acquisition. That distinction matters to race participants, who may be concerned about scheduled events, and to creditors seeking clarity on what business assets may be sold, transferred or reorganized. The filing and CEO’s letter do not provide a complete schedule of future events or confirm that the acquisition has closed.
The case also follows a rapid contraction across Fitlab’s portfolio: Nike Studios shut down, Y7’s locations closed, and several other brands were described as defunct or apparently closed. The bankruptcy process may clarify whether those businesses have remaining operations or assets, but the available information does not establish the reasons for every closure or assign responsibility for Fitlab’s overall financial position.
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Closures Before the Filing
Fitlab acquired Y7 in late 2024. Levey told Athletech News that the transaction was meant to provide funding for a franchise expansion, and said the chain had $10 million in annual revenue and $1.2 million in consolidated EBITDA at the time of the sale. The planned franchising did not take place, according to the report. These descriptions of the sale and Y7’s finances come from Levey and should be understood as her account.
Levey also said an entity called VM Fitness took over Y7 this summer and missed payroll in early August. In her Sept. 16 post, she blamed Fitlab and VM Fitness for decisions that she said led to the company’s decline. Athletech News reported that Nike Studios, another Fitlab operation, opened in 2023 and closed in March. Those developments preceded Fitlab’s Chapter 11 petition and form part of the backdrop to the filing, but the source material does not establish that any single closure caused the bankruptcy.
Fitlab’s business mix extended beyond studios. It included Ragnar, the relay race series, equipment maker Assault Fitness, training brand RPM Training and XPT, a breathing, movement and recovery platform founded by Laird Hamilton and Gabby Reece. Athletech News also described Mile High Run Club as defunct and Racked as appearing closed. The report does not give individual financial results for those brands.
“Watching it end this way has broken my heart in a way I don’t have words for.”
— Sarah Larson Levey, Y7 founder, in a Sept. 16 Substack post
Unresolved Debts and Brand Futures
The filing reports wide estimates rather than a finalized accounting: Fitlab listed $100 million to $500 million in liabilities, $10 million to $50 million in assets and 1,000 to 5,000 creditors. The supplied report does not identify the largest creditors, break down debts by brand, or say how much creditors may receive. Those details may become clearer through court filings and proceedings.
It is also unclear which Fitlab businesses remain active, whether any will continue under new ownership, and how the company intends to reorganize or sell assets. Levey’s statements about Y7’s finances, the missed payroll and responsibility for the closures are attributed claims; the source material does not include a response from Fitlab or VM Fitness. The report also does not establish the terms or completion date of a Ragnar acquisition.
Court Proceedings and Ragnar’s Sale
Fitlab’s Chapter 11 case will proceed in the U.S. Bankruptcy Court for the District of Delaware. Creditors and other parties will be able to follow the company’s filings for information on its finances, business plans and any proposed restructuring or asset sales. The source material does not give a hearing schedule, a plan deadline or a projected outcome.
For Ragnar, the next key development is whether the new investor group completes its acquisition. CEO Philip LaHaye said the group had funded seven events since mid-August and described the bankruptcy petitions as a step toward completing the deal. That statement indicates progress but is not confirmation that ownership has transferred. Participants will need updates from Ragnar on event schedules and any changes as the process develops.
Key Questions
What did Fitlab report in its bankruptcy filing?
Fitlab estimated $100 million to $500 million in liabilities, $10 million to $50 million in assets and between 1,000 and 5,000 creditors in its Chapter 11 petition in Delaware.
What happened to Y7’s studios?
Y7 closed all of its physical studios. Founder Sarah Larson Levey said the locations went dark in late August and September, with the last closing by Sept. 11.
Will Ragnar continue holding races?
Ragnar CEO Philip LaHaye said a new investor group funded seven events since mid-August and was working toward acquiring the series. The supplied report does not confirm that the acquisition is complete or give a full schedule of future events.
Does the Chapter 11 filing mean all Fitlab brands are closing?
No such conclusion is established by the filing details in the report. Chapter 11 is a court-supervised bankruptcy process, and the future of Fitlab’s individual brands remains unclear.
Source: athletechnews.com
