'It's unfathomable': Fitness companies describe how coronavirus derailed the booming industry

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This story has been updated with new details from fitness companies.

The COVID-19 outbreak has taken the world by storm: As of April 1, there are over 850,000 cases worldwide and nearly 190,000 in the U.S., which has become the global leader in the number of cases.

Boutique fitness studios and fitness franchises across the U.S. are among the industries feeling the financial blow from the coronavirus.

Coronavirus cases are still on the rise. (Graphic: David Foster/Yahoo Finance)
Coronavirus cases are still on the rise. (Graphic: David Foster/Yahoo Finance)

In 2018, global health club industry revenue totaled $94 billion, according to the 2019 International Health, Racquet, & Sportsclub Association Global Report, with over 210,000 clubs serving 183 million members.

“The industry is on pace with IHRSA’s global initiative, announced last year, to reach 230 million health club members worldwide by 2030,” Jay Ablondi, IHRSA’s executive vice president of global products, said.

That estimate is bound to change now that the coronavirus pandemic continues to spread rapidly across the world.

Coronavirus cases are still on the rise. (Graphic: David Foster/Yahoo Finance)
Coronavirus cases are still on the rise. (Graphic: David Foster/Yahoo Finance)

Thousands of facilities have been forced to closed their doors indefinitely until the government officially allows these businesses to open their doors again — and that likely won’t happen until at least May.

That means that thousands of fitness instructors and employees across the nation are currently without pay and without a job. Yahoo Finance reached out to eight leading fitness companies to see how they were handling the ongoing crisis:

Solidcore

Solidcore, an intensified pilates-based class with 72 locations nationwide, announced on March 17 that it would be laying off 98% of its workforce due to COVID-19.

According to Anne Mahlum, its founder and CEO, all of the employees will have their health benefits paid through the end of April and receive a $350 stipend. She was able to keep 13 people on the Solidcore team, who will have salary cuts of more than 50%. Meanwhile, Mahlum will not be taking any salary at all and will not until her company is able to recover from this shutdown.

“It’s pretty amazing seeing the support that we still have from employees and people that we had to lay off, they just keep asking what they can do,” she told Yahoo Finance. “You don’t grow to 72 locations in six years if you don’t have a successful product. When your company overnight is forced to close every studio down, you go from generating sales and revenue to zero.”

According to Mahlum, the company was on track to have its best month ever in the first half of March. She stressed that the company has never missed a payroll, a rent payment, or a utility bill.