Crunch Gets Crunched: Fitness Destination To Be Acquired By NEFC

May 6, 2009: Even fitness companies are feeling the crunch of the current economic situation. Crunch, a fitness and workout company with more than 20 locations nationwide, said it would be acquired by its senior secured lenders, New Evolution Fitness Co. California-based NEFC is a private equity firm focused on the health and fitness industry headed by Mark Mastrov, who founded 24 Hour Fitness, and Jim Rowley. As part of the transaction, Crunch said it has filed a voluntary petition under Chapter 11. "The sale will be accomplished through a bankruptcy process that permits other interested parties to make competing offers. Subject to the approval of the Bankruptcy Court and other customary conditions, the sale is expected to close in approximately 60 days," according to a statement from Crunch. Crunch said it would close only one location, in New York, but that other locations would remain open in New York, Chicago, Miami, Atlanta, San Francisco and Los Angeles. “The NEFC team is excited to be part of the new ownership group of Crunch." Mastrov said in a statement. "I have always considered Crunch to be one of the most innovative and cutting edge brands in the health and fitness industry since its inception in 1989. I look forward to working with  [Crunch CEO] Tim Miller and the entire Crunch management team in growing the Crunch brand, while continuing to deliver the fitness industry’s most unique offerings to our members.” NEFC earlier this year signed a deal with Ultimate Fighting Championship to open UFC gyms nationwide. Back to Home Page