Flywheel says they plan to close 25 percent of its studios in the next two weeks, according to FOX Business’ Liz Claman.
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“The Claman Countdown” obtained an email sent to customers of the indoor cycling studios that says their Los Angeles locations would be shutting down at the end of the month.
“Dear FlyFam, We are sad to announce that our Los Angeles studios will be officially closing on Thursday, August 29, 2019.”
The company will also be closing down studios in Scottsdale, Arizona; Austin, Texas; Walnut Creek and Sunnyvale California along with other locations.
Sources inside the company told Claman they’re closing underperforming locations, and all customers will receive full refunds or will be able to transfer their credits to another studio.
This comes as Peloton, one of the company’s main competitors, is suing them for patent infringement. Peloton is also preparing for an IPO later this year.
It has been a tough few weeks for tech / fitness companies. SoulCycle, another well-known indoor cycling fitness studio, is under attack after billionaire chairman Stephen Ross held a Hamptons fundraiser for President Trump.