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FitLab Files for Chapter 11 Bankruptcy: Parent Behind Ragnar, Y7, and Mile High Run Club Faces Up to $500 Million in Debt

FitLab Files for Chapter 11 Bankruptcy: Parent Behind Ragnar, Y7, and Mile High Run Club Faces Up to $500 Million in Debt

California-based sport lifestyle and boutique fitness conglomerate FitLab, Inc. has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.

The Newport Beach-based company filed alongside 23 affiliated entities—including corporate arms tied to popular brands such as relay organizer Ragnar Events, hip-hop infrared yoga brand Y7 Studio, treadmill boutique Mile High Run Club, and equipment maker RPM Fitness.

The Numbers & Restructuring Plan

According to court filings:

  • Liabilities vs. Assets: FitLab estimates its total liabilities range between $100 million and $500 million, compared to estimated assets of only $10 million to $50 million.
  • Creditors: The filing reports between 1,000 and 5,000 creditors, with funds expected to be available for distribution to unsecured creditors. Major unsecured claims include marketing bills from Google and Meta, convertible note holders, inventory suppliers, and commercial landlords.
  • Leadership & Advisers: Nicholas Rubin of Force 10 Advisors has been named Chief Restructuring Officer (CRO), alongside legal counsel Raines Feldman Littrell LLP and investment bank Hilco Corporate Finance to guide the restructuring and potential asset sales.

How Did FitLab Get Here?

Founded in 2019 by former Nike executive Brian Kirkbride and former UFC Gym executive Mike Melby, FitLab grew rapidly through acquisitions. The aggressive expansion strategy ultimately led to mounting strain:

  • Rapid Acquisition vs. Studio Cash Flow: Analysts and restructuring experts noted the company scaled through buyouts faster than its physical footprint could generate operating cash flow, relying heavily on debt to remain operational.
  • Operational Turmoil: Leading up to the filing, brands under FitLab’s umbrella faced abrupt closures, missed employee payrolls, sudden operator transitions, and contractor lawsuits. Earlier in October, a California court granted an emergency attachment against FitLab property after finding the company insolvent in an unpaid contractor dispute.

The Chapter 11 process allows FitLab to continue operations under court supervision while attempting to sell off valuable pieces of its intellectual property, equipment lines, and event brands to prospective buyers.

Sources & Further Reading

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