Town Sports seeks approval of $1.5 million employee retention program

By Sarah Lizee

Olympia, Wash., Oct. 16 – Town Sports International, LLC is seeking court approval to implement a key employee retention plan, according to a Thursday motion in the U.S. Bankruptcy Court for the District of Delaware.

The program is for 135 essential non-insider employees, with a maximum total payout of roughly $1.5 million.

The company said some of its key employees may be motivated to leave based on the continued challenges involving the asset sale process and uncertainty about the future of their positions with the debtors.

“The KERP participants perform a variety of important business functions for the debtors that are vital to the debtors’ ability to preserve and enhance stakeholder value,” the motion said.

Town Sports is a Jupiter, Fla.-based owner and operator of fitness clubs. The company filed bankruptcy on Sept. 14 under Chapter 11 case number 20-12168.

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