Crunch Fitness sold to TPG private equity firm
Crunch Fitness — the quirky gym chain known for classes like “Ass & Abs” — said Monday it has been sold to buyout firm TPG.
Terms of the deal weren’t disclosed, but with backing from the private equity firm’s TPG Growth unit, Crunch plans to double its footprint over the next five years, Crunch Chief Executive Jim Rowley told The Post.
Crunch, which debuted in the East Village in 1989, now boasts more than 300 gyms across the US and parts of Australia, Canada and Spain. Most of the chain is franchised, with only 50 locations corporate-owned.
Early on, Crunch got attention for featuring classes like Cardio Strip and Pole Dancing — where 6-inch heels were just as likely to be found in the studio as dumbbells, according to reports at the time.
“We’ve always been into group fitness and continue to look for what’s new,” Rowley said.
The deal comes at a time of brutal competition in the gym niche, as discount chains like Planet Fitness and Blink have expanded rapidly, charging members as little as $10 to $15 a month.
In April, Town Sports — the owner of New York Sports Club — admitted that it continues to lose members. Its shares are off more than 80% during the past 12 months.
Crunch’s response: Devise membership packages that appeal not only to budget-conscious customers but also those seeking amenities found at higher-end, boutique-style gyms and studios.
In some regions, Crunch offers a $9.95 monthly membership, which gives members gym and locker room access. Crunch’s higher-end “Signature” clubs, meanwhile, charge as much as $135 a month.
With the latter, members get access to “full service” locker rooms with Rituals bath products and styling tools, as well as classes such as “Hard Knocks,” an “’in your face’ cardio workout [that] fuses the hard-hitting power of boxing with the booty-dropping swagger of hip-hop,” according to Crunch’s website.
Crunch felt the squeeze during the financial crisis, when it was forced to cut prices to prevent cash-strapped members from fleeing, according to reports. It was bought out of bankruptcy by Angelo Gordon and 24 Hour Fitness alums Rowley and Mark Mastrov in August 2009.
TPG has other investments in the health and wellness space, including Club Pilates and vitamin-maker Schiff.