FitLab Files Chapter 11 With Up to $500M in Debt, Names 23 Affiliated Debtors

FitLab Inc., the holding company behind Ragnar, Y7 Studio and Assault Fitness, filed for Chapter 11 protection on Oct. 26 in the U.S. Bankruptcy Court for the District of Delaware, listing $100 million to $500 million in liabilities against just $10 million to $50 million in assets.

Suppliers should confirm which of FitLab’s 23 debtor entities they invoiced and file a proof of claim before any bar date is set.

FitLab’s Chapter 11 case names 23 affiliated debtors

FitLab organized the filing across 23 affiliated debtors, spreading the case well beyond its best-known names.

• FitLab’s Chapter 11 petition, case No. 26-11681-KBO, names 23 affiliated debtors, including Ragnar Events LLC, Y7 Studios LLC, RPM Fitness Inc. and Mile High Run Club LLC.
• Court records list 1,000 to 5,000 creditors across the consolidated filing.
• FitLab Fund Management LLC holds 80% of the company’s equity, with FitLab LLC holding the remaining 20%.

Y7’s studios went dark before FitLab’s bankruptcy filing

Y7 Studio, the yoga chain FitLab bought in late 2024, had already gone dark by the time the petition was filed.

• Y7 founder Sarah Larson Levey said the chain’s last studio closed by Sept. 11, weeks ahead of FitLab’s Oct. 26 filing.
• VM Fitness took over Y7’s operations this summer and missed payroll in early August, according to Larson Levey.
• Nike ended its three-year Nike Studios partnership with FitLab in March, closing every location under that brand.

Elysian Park Ventures holds FitLab’s largest unsecured claim

FitLab’s largest unsecured claims point to the kinds of vendors now watching the case closely.

• Elysian Park Ventures LLC holds the largest unsecured claim, at roughly $7.09 million tied to convertible-note debt.
• Google, Shopify and FiTek Fitness Products Inc. also appear among the top 30 unsecured creditors, a list that spans trade and inventory, marketing and IT service claims.
• Hilco Corporate Finance LLC is serving as the case’s investment banker, while Force 10 Advisors’ Nicholas Rubin is acting as chief restructuring officer.

What to do now

Creditors with exposure to Ragnar, Y7 or FitLab’s other brands have a narrow window to protect their recovery.

1. Identify which of the 23 debtor entities your company invoiced, since claims are filed against each entity separately, not against FitLab Inc. alone.
2. Check outstanding invoices to Ragnar, Y7 or Assault Fitness against your coverage, subject to credit limits, notification requirements, and policy terms in place at the time of the filing.
3. Contact Securitas Global Risk Solutions to confirm your claim filing steps under your policy.

Disclaimer:
This blog post is meant to be informative and provide helpful tips and insights into credit insurance policies. It is not meant to supersede any policy requirements. Please consult your credit insurance policy for all requirements including claim filing deadlines and required documentation.

Since 2004, Securitas Global Risk Solutions, LLC has helped clients develop trade credit and political risk transfer solutions. As an independent brokerage, Securitas is focused on developing comprehensive solutions that meet client needs, ensuring a complete understanding of policy wording and delivering excellent responsive service. If you want to understand how trade credit insurance can protect your business, contact Securitas Global Risk Solutions to speak with a specialist.