A gym with LoHi and Berkeley locations is trying to work out its financial troubles after closing two other Denver-area studios last year.

Alchemy 365 filed for Chapter 11 bankruptcy last week in hopes to keep its fitness studios at 2432 W. 32nd Ave. and 4144 Tennyson St. open.

The company, which offers group classes that combine yoga, strength and cardio, reported $1.65 million in debt and $174,350 in assets. It cited dwindling revenues and pandemic-induced debt as reasons to restructure.

Alchemy shuttered six unprofitable locations in the fourth quarter last year, according to bankruptcy filings. Two of those locations were local, in Englewood and RiNo, while the other four were in Minnesota, where Alchemy first started in 2014.

The Tennyson and LoHi studios are Alchemy’s only remaining ones. 

“Rebounding from the pandemic has simply not panned out as we’d hoped,” Alchemy co-founder and CEO Tyler Quinn wrote in a November letter announcing the Minnesota closures. “Despite a lot of great people working very hard, we never quite figured out how to reconcile our pre-pandemic leases, debts, and operating budget, with our post-pandemic revenue.”

Quinn said in bankruptcy court filings that back rent piled up when Alchemy studios were closed for nine months amid the pandemic. Then, revenue was lower coming out of the pandemic, causing the company to fall behind on several Small Business Administration loans it took out from 2016 through 2020.

About a third of Alchemy’s listed debt is owed to the SBA. The company’s LoHi landlord is owed nearly $200,000.

Alchemy said it had revenue of $3.25 million in 2024, down from $3.72 million in 2023. It made $138,000 last month.

Alchemy opened four locations in Minnesota from 2015 through 2017 before raising $3.3 million dollars in 2018 and 2019 to expand, according to the company. Quinn said Alchemy spent about $2 million between 2018 and 2020 building out a fifth Minnesota location and its first two Colorado locations.

LoHi was Alchemy’s first foray into Denver. The company opened in 5,000 square feet in 2018. Co-founder Molly Hanten told BusinessDen at the time that Alchemy expected to open eight more Denver studios by 2023 and was eyeing other markets like Austin and Charlotte.

“Since the workouts change every day, it’s under an hour and you get results,” Hanten said of Alchemy’s classes. “It’s the most bang for your buck.”

The Tennyson location opened shortly before the pandemic, filings state. RiNo was added in 2022 and Englewood in 2023.

Alchemy employs 40 people across two locations, and offers about 500 classes a month that can fit around 25 people, according to bankruptcy filings. The two studios have approximately 950 members across three tiers ranging from $99 to $179 per month. Single sessions can be purchased for $29. About 80 percent of those who attend classes are members. 

Alchemy has about four years left on its Tennyson lease and about five years in LoHi.

The studios remain open. Quinn filed for an expedited hearing to speed up the process to provide stability to employees and members, filings show.