Town Sports International Holdings is seeking relief after failing to win tens of millions of dollars in financial aid, Bloomberg reported, citing sources familiar with the matter it didn't identify.
The company -- which bills itself as one of the largest owners and operators of fitness clubs in the Northeast -- had been attempting to obtain $80 million from Kennedy Lewis Investment Management, Bloomberg reported, but that firm backed out when the gym chain realized the amount wouldn't be large enough and raised its request to $200 million.
The push for funding comes as the sports club owner looks to refinance a loan due in November, according to the sources. Kennedy Lewis already made one investment while the stock was down, the people said.
By filing for bankruptcy, Town Sports would be able to cut its debt and close locations that are underperforming, Bloomberg reported.
Representatives for Town Sports and Kennedy Lewis Investment Management didn't immediately respond to FOX Business' request for comment.