Item 7.01 Regulation FD Disclosure.
As previously reported in its Current Report on Form 8-K filed on
However, the scope and duration of the interruption to our operations has
substantially reduced our cash flow. Moreover, as disclosed in the Company's
Annual Report on Form 10-K, the Company is facing significant debt maturities in
the near term. Our 2013 Revolving Credit Facility expires on
In response to these challenges, the Company's board of directors is actively considering all strategic alternatives, including but not limited to negotiating with existing lenders, engaging with potential financing sources to raise capital, or filing for bankruptcy. The Company has also taken prompt action to preserve liquidity during the interruption of its operations, including by terminating employees at clubs that have been forced to close and by ceasing lease payments on its locations.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Forward-Looking Statements
Certain statements in this report regarding the Company's future reporting
intentions contain "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995. You can identify these
forward-looking statements by the use of words such as "outlook," "believes,"
"expects," "potential," "continues," "may," "will," "should," "seeks,"
"approximately," "predicts," "intends," "plans," "estimates," "anticipates,"
"target," "could," or the negative version of these words or other comparable
words. Such statements are subject to various risks and uncertainties, many of
which are outside our control, including, among others, the duration and
severity of the COVID-19 pandemic, actions that may be taken by governmental
authorities to contain the COVID-19 outbreak or treat its impact, the potential
negative impacts of COVID-19 on the economy in
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