The financing marks a new phase in the gym operator’s ongoing turnaround and growth strategy
24 Hour Fitness has closed a $305 million senior secured credit facility from affiliates of The TCW Group, a move aimed at bolstering liquidity and addressing upcoming debt maturities.
The health and fitness operator said the new financing will support its long-term objectives, including optimizing its club base and maintaining strong cash flow to fund continued investment and innovation.
“This financing is more than just a capital raise — it is a strong endorsement of our business trajectory and operational momentum,” 24 Hour Fitness CEO Karl Sanft said. “It gives us the flexibility to further enhance our club portfolio and member experience. Our leadership team is excited to build on the solid foundation we have created and bring the company to the next level.”
Under Sanft, who took the helm in June 2022, 24 Hour Fitness has prioritized upgrading its existing clubs and improving its financial position while distinguishing itself from HVLP competitors through its premium amenities like pools, spas, steam rooms and saunas.
“I’ve been focused on getting the company healthy from the inside out,” Sanft told Athletech News last fall. “What that means is that you can’t just build 10, 20 clubs a year and not invest in the clubs you have. The headline of new clubs is always exciting, but when you invest in refreshes and remodels, it’s amazing what it does.”
TCW now serves as the company’s largest lender, while majority equity ownership remains with Monarch Alternative Capital, Sculptor Capital Management, and Cyrus Capital Partners
“24 Hour Fitness has demonstrated significant progress in recent years, both operationally and financially,” Monarch managing principal Patrick Fallon said. “The capital provided by TCW further supports our collective belief in 24 Hour Fitness’s strategy, its leadership team and the tremendous opportunities ahead.”
In recent months, 24 Hour Fitness has expanded its wellness offerings across select clubs with the rollout of new recovery and smart training zones. The fitness operator has introduced Recovery24, a spa-inspired space featuring Hyperice Normatec compression therapy and Human Touch massage chairs, as well as Premium Fit24, which includes connected strength equipment with built-in tutorials, adaptive programs and workout tracking.
Additionally, after a successful 2024 pilot, 24 Hour Fitness is scaling its partnership with Dietitian Live, bringing virtual access to registered dietitians to over 250 clubs. The service offers members personalized nutrition strategies designed to complement their fitness routines and support long-term wellness goals.
