LA Fitness takes over 9 XSport gyms in Chicago

CHICAGO – LA Fitness is taking over the gyms of XSport Fitness, placing nine locations in Chicago under new management starting Tuesday.

XSport members received the news via email late last week from Capital Fitness Inc., XSport’s parent company.

“Capital Fitness Inc (XSport Fitness) has decided to exit the health and fitness club business,” the email to club members states. “As a result, we will transfer the operation of our clubs, including your home club, to Fitness International, LLC, doing business as ‘LA Fitness,’ effective July 16, 2024.”

LA Fitness will honor XSport memberships and collect dues “at the same rate as before,” the email said. Memberships with access to one club will remain unchanged, while members with access to multiple clubs will also be able to visit all LA Fitness-branded locations across the country, according to the email.

XSport and LA Fitness did not respond to requests for further comment.

The announcement did not specify whether gyms would close. XSport operates nine gyms in Chicago and LA Fitness operates 10. The deal will put nearby gyms under the same management, including LA Fitness’s gym on Foster Avenue and XSport’s gym on Elston Avenue on the Northwest Side, as well as gyms in East Lakeview and South Loop.

Some XSport members are concerned that the acquisition could result in drastic changes to hours. XSport’s Chicago locations are open 24 hours a day, while local LA Fitness gyms close between 9 p.m. and 11 p.m. on weekdays and earlier on weekends.

North Park resident Matt Rago works two jobs and worries that switching his gym to LA Fitness could mean less flexibility, he said.

“I find this unfortunate,” Rago said. “The 24-hour model is essential for many people, especially those with multiple jobs or jobs that are relatively demanding.”

Omar Vega of Belmont Cragin also relies on the 24-hour model, heading to his local XSport around 1 a.m. after his bartending shift. He hopes the acquisition of LA Fitness means XSport will get a new face.

“Anyone who goes to XSport can tell you that they don’t have the best equipment or that their equipment may not work or needs repair or may even be missing,” Vega said.

With the club handover, LA Fitness continues its expansion in the fitness industry.

In 2011, the company acquired 171 clubs, including 27 in Illinois, from Chicago-based Bally Total Fitness in a $153 million deal. The following year, LA Fitness acquired two smaller clubs, Urban Active and Lifestyle Family Fitness Clubs.

Despite this growth, LA Fitness is unlikely to be able to achieve a monopoly position in the fitness club sector, according to one expert.

“The fact is that the fitness category, like the athletic footwear category, is huge,” said Joe Pellegrini, managing director of financial services firm Baird, which focuses on the fitness and wellness sector. “My gut feeling is that LA Fitness wouldn’t pursue this if they didn’t think it was a high-quality asset or an asset that has characteristics that fit very well with what they do.”

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