Gyms and local businesses weigh the risk of coronavirus exposure against the threat of bankruptcy

  As death tolls from coronavirus continue to mount, it seems like some people are finally beginning to take the pandemic seriously. Other Americans are protesting quarantine measures, demanding their constitutional right to haircuts. On April 16, 2020, President Donald Trump unveiled guidelines for businesses to reopen. The first phase, which could begin as early as May 1, 2020, allows for gyms and other venues to reopen if they follow strict sanitation and social distancing guidelines.

     While the news is plastered with images of protesters demanding to return to normalcy, this sentiment isn’t universally held. Phoenix Mayor Kate Gallego has stated that she doesn’t believe the state will be ready to reopen by May 1^st. President Trump spoke with fitness powerhouses Equinox and SoulCycle when strategizing gym protocols, but those companies charge exorbitant membership fees and aren’t widespread in Arizona. Even if gyms have the option to reopen, some may choose not to if the liabilities of operating outweigh the possible benefits.

     Some gyms that remain closed for the pandemic may never reopen. Business owners that are struggling may want to begin educating themselves on the bankruptcy process and the chapters of bankruptcy available to them. Chapter 11 is most utilized by larger businesses that want to keep operating and try to become profitable. If the business owner has personal assets on the line, they may want to consider a Chapter 7 bankruptcy if they qualify. While they will have to close the business and surrender any tools of the trade, most of their unsecured debts will be discharged.