Complaints Emerge Following Fitness International's Closing Locations in 2020
On March 30, 2020, a class-action lawsuit was filed against Fitness International LLC (Fitness International), naming the company’s subsidiary LA Fitness. The complaint alleges that following the COVID-19 (coronavirus) pandemic, Fitness International voluntarily closed its locations and furloughed the majority of its employees throughout the country. The lawsuit also claims that the company failed to refund its gym members, keeping millions of dollars in membership fees. Following the lawsuit, Fitness International offered its members extended memberships and free three-month memberships as an apology for closing its facilities.
COVIDIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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