YogaWorks (OTCPK:YOGA) has filed for chapter 11 to implement orderly closing of all studios across the U.S.
The company has entered into a stalking horse bidder agreement with Serene Investment Management for acquiring YogaWorks’ digital and education business as well as its intellectual property.
The company’s operations will continue via its live stream and on-demand digital platforms, YogaWorks Live and MyYogaWorks.
The company has secured debtor-in-possession financing with Serene to support through the pendency of the reorganization.
Brian Cooper, Chief Executive Officer commented, “After considering a number of alternatives to overcome the financial challenge of the studio closures, we determined that implementing an orderly restructuring process is in the best interest of all of our key stakeholders, most notably our dedicated teachers and passionate students. With the improved financial flexibility provided through this process, we will continue to build upon the strengths of our digital and educational platforms, both of which have proven to be successful and have experienced significant growth over the course of the past several months. We look forward to continuing to serve our loyal students and positioning YogaWorks for long-term success.”