FitLab Files for Chapter 11 Bankruptcy
The fitness company, which owns Y7 Studio and Mile High Run Club, filed in Delaware after its Nike studio pilot and a revenue decline of more than 50 percent in 2025.
Updated on Nov. 5, 2026 in Openings & Closings
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FitLab filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Delaware in late October 2026. The company had launched 10 Nike Studios across California and Texas using Nike's $20 million lead investment in its $25 million Series B round.
Why it matters
FitLab attributes the filing partly to inconsistent operating profitability and to uncertainty over import costs and customs releases after tariff changes beginning in April 2025. The collapse shows how a large strategic investment can be consumed by a pilot that does not generate enough revenue to sustain the business.
FitLab's net revenue dropped more than 50 percent in 2025, while about $20 million in merchant cash advances and similar loans from 17 funders remain to be repaid. The figures come from the company's own account, and the source does not say how the debt will be restructured.
The players
FitLab
FitLab is a fitness company that owns Y7 Studio and Mile High Run Club and was backed by Nike's Series B investment.
Nike
Nike is the global athletic apparel and footwear company that led FitLab's $25 million Series B round with a $20 million investment.
The details
FitLab spent substantially all of Nike's $20 million investment on the 10-studio pilot, and permitting and construction took longer than expected. Assault Fitness, which FitLab acquired in 2024, had generated most of the company's revenue and profit, but it lost its major manufacturer, Impulse Fitness, and was out of market for six to eight months during the transition.
Timeline
2024: FitLab acquired Assault Fitness.
April 2025: Tariff changes began, raising import costs.
2025: FitLab's net revenue declined more than 50 percent.
Late October 2026: FitLab filed for Chapter 11 bankruptcy in Delaware.
Market Landscape
FitLab's filing follows tariff changes that began in April 2025 and raised import costs for fitness equipment makers. The case shows how a company dependent on a single manufacturer and on high-cost financing can be pushed toward bankruptcy when those conditions shift.
Members of Y7 Studio and Mile High Run Club should check with their studios about membership status and class schedules during the bankruptcy process. Customers with prepaid memberships or gift cards may need to file claims, though the source does not specify the procedure.
The takeaway
Consumers of subscription-based fitness services should confirm how their prepaid balances would be handled if a provider files for bankruptcy. Investors and partners should note that a large strategic investment can be spent quickly on expansion before revenue stabilizes.
Further reading
Track other business closures in the Openings & Closings section.
Source note: This article includes information reported by Inc..
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