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Fitlab filed for Chapter 11 bankruptcy protection in Delaware, reporting estimated liabilities of $100 million to $500 million and assets of $10 million to $50 million. The filing follows Y7’s closure of all its studios and comes as Ragnar moves toward a change in ownership; the bankruptcy’s effects on Fitlab’s other businesses remain unclear.
Fitlab, the California fitness holding company whose portfolio has included Y7 yoga studios and the Ragnar relay race series, filed for Chapter 11 bankruptcy protection in Delaware, reporting estimated liabilities of $100 million to $500 million against assets of $10 million to $50 million. The filing follows Y7’s closure of all its physical studios and comes as Ragnar moves toward new ownership.
Fitlab’s petition to the U.S. Bankruptcy Court for the District of Delaware lists between 1,000 and 5,000 creditors, according to Athletech News. The filing is a court process for addressing the company’s financial situation; the reported figures are estimates in the petition, not a final accounting of what creditors will recover or what the company’s assets are worth.
Y7, the yoga chain Fitlab acquired in late 2024, closed all its physical studios in late August and September, with its final location closing by Sept. 11, founder Sarah Larson Levey wrote in a Sept. 16 Substack post. She told Athletech News in September that Y7 had been generating $10 million in annual revenue and $1.2 million in consolidated EBITDA when she sold it. Those financial figures are her account of the business at the time of the sale.
Fitlab’s portfolio also included Assault Fitness, RPM Training, XPT, Racked and Mile High Run Club, as well as Nike Studios, which opened in 2023 and ceased operations in March, the source report said. The filing’s effect on those businesses has not been specified in the information available. Ragnar is moving toward a separate ownership change: CEO Philip LaHaye told participants that a new investor group had funded seven events since mid-August and that Fitlab’s bankruptcy filing was a step toward completing its acquisition of the race series.
Y7 Closures and Ragnar’s Ownership
The bankruptcy places a range of fitness and event businesses tied to Fitlab under the spotlight as creditors and other stakeholders seek clarity on the company’s finances. For Y7 customers and former employees, the immediate development follows the end of the studio chain’s physical operations. For Ragnar participants, the company’s financial trouble coincides with an ownership change that its CEO says is progressing.
The contrast between the filing’s $100 million to $500 million in estimated liabilities and $10 million to $50 million in estimated assets signals a substantial gap in the figures reported to the court. Those ranges alone do not establish the eventual outcome for creditors, workers, customers or individual brands. The bankruptcy process may provide more detail about the company’s obligations and the future of its remaining operations.
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From Y7 Acquisition to Bankruptcy
Fitlab acquired Y7 in late 2024 in a deal that Larson Levey said was intended to support franchising. She said that expansion plan did not happen. Her comments describe the business as she understood it at the time of the sale; the source material does not include Fitlab’s account of the acquisition or the subsequent decisions.
Larson 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 wrote that the studios went dark in late August and September. The bankruptcy filing follows that sequence of events, but the available report does not establish how responsibility for Y7’s closure is divided among Fitlab, VM Fitness or other parties.
Fitlab’s portfolio had already undergone other changes. Nike Studios stopped operating in March, while Mile High Run Club was described as defunct and Racked appeared to be closed. Ragnar’s move toward new ownership is a separate development within that broader contraction: LaHaye said an investor group had funded events while working toward an acquisition.
“Watching it end this way has broken my heart in a way I don’t have words for.”
— Y7 founder Sarah Larson Levey, in a Sept. 16 Substack post
Unresolved Debts and Brand Futures
The petition gives estimated ranges, not a final determination of Fitlab’s assets, debts or creditor payments. The available report does not specify the company’s proposed restructuring, which assets it may seek to retain or sell, or how the court process will affect its individual brands.
It is also unclear what will happen to Fitlab’s businesses beyond Y7 and Ragnar, including Assault Fitness, RPM Training and XPT. Levey’s statements about Y7’s financial position, the failed franchising plan, VM Fitness’s role and missed payroll are attributed claims; Fitlab and VM Fitness’s responses are not included in the source material. Ragnar’s CEO says an acquisition is under way, but a completed transfer and its terms are not confirmed in the report.
Court Proceedings and Ragnar Deal
Fitlab’s Chapter 11 case will proceed in the U.S. Bankruptcy Court for the District of Delaware. The petition establishes the start of the case, but the source report does not provide a hearing schedule, a restructuring proposal or a deadline for a decision. Future court filings may clarify the company’s finances and plans for creditors and its businesses.
For Ragnar, the next key development is whether the investor group completes its acquisition. LaHaye said the group had funded seven events since mid-August and described the bankruptcy filing as a step toward completing the deal. The timing, terms and final outcome of that ownership change were not reported.
Key Questions
What did Fitlab report in its bankruptcy filing?
Fitlab’s Chapter 11 petition lists estimated liabilities of $100 million to $500 million, assets of $10 million to $50 million and between 1,000 and 5,000 creditors, according to Athletech News.
Is Y7 still operating studios?
No. Y7’s physical studios closed in late August and September, with the last location closing by Sept. 11, according to founder Sarah Larson Levey’s post cited by Athletech News.
What happens to Ragnar?
Ragnar is moving toward a change in ownership. CEO Philip LaHaye said a new investor group funded seven events since mid-August and that Fitlab’s bankruptcy filing was a step toward completing its acquisition. The deal’s completion and terms are not confirmed in the source report.
Does the filing mean Fitlab’s other brands have closed?
The available information does not say that all Fitlab brands have closed. Nike Studios ceased operations in March, and the report describes Mile High Run Club as defunct and Racked as appearing closed. The filing’s effects on other businesses, including Assault Fitness, RPM Training and XPT, remain unclear.
Source: athletechnews.com
