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California fitness holding company Fitlab filed for Chapter 11 bankruptcy protection in Delaware, listing estimated liabilities of $100 million to $500 million and assets of $10 million to $50 million. The filing follows the closure of Y7’s physical studios and the shutdown of Nike Studios; Ragnar is moving toward new ownership, according to its CEO.
Fitlab, the California fitness company that owns or has operated brands including Y7 and Ragnar, filed for Chapter 11 bankruptcy protection in Delaware this week, reporting estimated liabilities of $100 million to $500 million. The filing comes weeks after Y7 closed its physical studios and as Ragnar moves toward a change in ownership.
In its petition to the U.S. Bankruptcy Court for the District of Delaware, Fitlab estimated assets of $10 million to $50 million and listed between 1,000 and 5,000 creditors. The filing represents the company’s reported financial position; the figures are estimates in the petition, not a final accounting of what creditors will recover.
The filing followed the closure of all Y7 physical studios. Founder Sarah Larson Levey wrote in a Sept. 16 Substack post that the locations went dark in late August and September, with the final closure by Sept. 11. Fitlab acquired Y7 in late 2024. Levey said the purchase was intended to fund the yoga chain’s expansion through franchising, but that plan did not happen.
Levey told Athletech News in September that Y7 generated $10 million in annual revenue and $1.2 million in consolidated EBITDA when she sold it. Those figures and her account of the company’s subsequent management are her statements, not financial findings established by the bankruptcy filing. She said an entity called VM Fitness took over Y7 this summer and missed payroll in early August.
Y7 Closures and Ragnar’s Ownership Shift
The filing places a court-supervised restructuring process around a company whose portfolio has already experienced closures and operational changes. For Fitlab’s creditors, the petition’s reported gap between liabilities and assets signals that the case could involve competing claims over limited resources. The filing alone does not establish how much any creditor will receive or which businesses, if any, will continue operating under Fitlab.
For customers and participants, the brands’ situations differ. Y7’s physical studios have closed, while Ragnar is moving toward a new owner, according to its chief executive. Ragnar’s events matter to runners who may have registered, but the available report does not detail how the bankruptcy case will affect every scheduled event, participant payment or obligation.
The case also affects a wider collection of fitness businesses. Fitlab’s portfolio has included Assault Fitness, RPM Training, XPT and other studio and training brands. The filing makes the company’s financial condition a matter for creditors and the court, while leaving the near-term status of individual businesses dependent on developments in the case and any ownership arrangements.
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A Portfolio Under Strain
Fitlab’s portfolio included Y7, Ragnar and Assault Fitness, as well as RPM Training, XPT, Racked and the now-defunct Mile High Run Club. The company also operated Nike Studios, which opened in 2023 and ceased operations in March, according to Athletech News. The filing follows those business changes, though the source material does not establish that any one closure caused Fitlab’s bankruptcy.
Y7’s founder described a sharp difference between the chain’s reported performance at the time of sale and what followed. Levey said the studios were not struggling when she sold them to Fitlab in late 2024, and that franchising was intended to support growth. She later blamed Fitlab and VM Fitness for decisions that she said damaged the company. Those are Levey’s allegations; the bankruptcy petition, as described in the report, does not determine responsibility for Y7’s closure or missed payroll.
Ragnar’s transition has been proceeding separately. CEO Philip LaHaye told participants that a new investor group funded seven events beginning in mid-August. He characterized Fitlab’s bankruptcy petitions as a step toward completing the race series’ acquisition, rather than reporting that the transfer was already complete.
““Watching it end this way has broken my heart in a way I don’t have words for.””
— Sarah Larson Levey, Y7 founder, in a Sept. 16 Substack post
Creditors and Brand Futures Remain Open
The filing provides broad ranges for Fitlab’s assets, liabilities and creditor count, but the available report does not specify the identities of creditors, the amount owed to each, or likely recoveries. Those details may become clearer as the bankruptcy case proceeds. The petition’s estimates should not be treated as a final valuation.
It is also unclear which Fitlab businesses will continue operating, be sold or close, and whether the court process will affect brands beyond the closures already reported. For Y7, the source material does not describe any reopening or future operating plan. Levey’s claims about the chain’s management and missed payroll have not been presented as adjudicated findings.
Ragnar’s new investor group has funded events, according to LaHaye, but the source says the acquisition is still being completed. The final terms, timing and operational arrangements are not provided. It remains unclear how the bankruptcy will affect specific event commitments or any participant concerns.
Court Proceedings and Ragnar Transfer
Fitlab’s Chapter 11 case will proceed in the U.S. Bankruptcy Court for the District of Delaware, where creditors and other parties can respond to the company’s petition and its proposed path through bankruptcy. The source material does not give a schedule for hearings, a restructuring plan or a sale process, so the next milestones and eventual outcome are not yet known.
For Ragnar, the immediate development to watch is whether the new investor group completes its acquisition and how the series communicates any changes to participants. LaHaye’s letter described the bankruptcy filing as a step toward that outcome, not confirmation that the transfer had closed. Further details on Fitlab’s other brands and the handling of Y7’s business may emerge as the court case develops.
Key Questions
What did Fitlab report in its bankruptcy filing?
Fitlab estimated $100 million to $500 million in liabilities, $10 million to $50 million in assets and between 1,000 and 5,000 creditors in its Chapter 11 petition. These are estimated ranges in the filing.
What happened to Y7’s studios?
Y7 closed all of its physical studios. Founder Sarah Larson Levey said in a Sept. 16 post that the last location closed by Sept. 11.
Has Ragnar been sold?
The acquisition was described as in progress, not complete. CEO Philip LaHaye said a new investor group had funded seven events since mid-August and characterized Fitlab’s bankruptcy filing as a step toward completing the deal.
Did the bankruptcy filing establish why Y7 closed?
No. Levey blamed Fitlab and VM Fitness for decisions she said led to Y7’s decline and said VM Fitness missed payroll in early August. Those are her claims; the filing does not establish responsibility for the closures.
Source: rss
