The abrupt closure of all The BXNG Club branches, attributed to a court decision, ends months of financial struggles that began with a Chapter 11 bankruptcy filing last summer, leaving members and staff reeling. In a heartfelt statement to members, The BXNG Club expressed gratitude and regret.
"First and foremost, thank you," read an email sent to members and subscribers on March 21. "Your support, passion, and love for THE BXNG CLUB over the years have meant everything to us. Our members are the heart of this community, and it has been an honor to serve you. It is with a heavy heart that we share some difficult news. Due to a court decision, we are forced to close all locations tomorrow (3/23). This is not the outcome we had hoped for, and we know this is just as devastating for you as it is for us."
The club detailed exhaustive efforts to stay afloat, including seeking new investments and negotiating a potential sale, but ultimately, those avenues failed. The BXNG Club's financial woes first surfaced publicly in July 2024, when it initiated Chapter 11 bankruptcy proceedings.
The gym, billing itself as Southern California's "fastest-growing combat sports and fitness brand," had expanded rapidly, opening most of its four San Diego locations - East Village, Solana Beach, Rancho Bernardo, and a prior Kearny Mesa site - within five years. The Rancho Bernardo branch, a sprawling 17,000-square-foot facility, debuted in March 2023, followed by plans for a 15,000-square-foot Los Angeles Arts District location in 2024. But the expansion came at a cost: court filings revealed $5.1 million in assets against $5.7 million in debts, a $600,000 gap that triggered the reorganization bankruptcy.
Signs of distress emerged quickly. By mid-April 2024, the Rancho Bernardo location lagged on rent, accruing $95,403.99 in arrears by June 26, prompting an eviction notice from the landlord. The lease, one of the club's priciest with a $50,000 security deposit and $38,373 monthly rent in its second year, strained finances further. Two lawsuits resulting in $329,000 in settlements added to the burden, though specifics remained unclear. Founder and CEO Artem Sharoshkin, in a July 2024 statement, blamed "economic headwinds and pandemic consequences," citing a shrinking membership base, rising utility costs, and California's high operating expenses.
Initially, optimism prevailed. Company attorney claimed the goal was to "reorganize, restructure and come out of bankruptcy stronger than before," preserving the club’s community. Sharoshkin echoed this, promising in a member email that "the company will emerge from this process in a much stronger position."
A July 23, 2024, creditor meeting kicked off the process, and the club pushed forward, even hosting a boxing spar fest in August at Rancho Bernardo. Yet, the court's recent ruling - details of which remain undisclosed - derailed those hopes, forcing an immediate shutdown across all sites, including the yet-to-open LA branch.
The closure has left some members in a lurch, facing unresolved billing issues with little recourse. One former member shared their frustration, stating, "Their Kearny Mesa location kept charging me after I cancelled my membership. Even kept charging me after their location closed down."
They added, "For over a month now I've been threatened by something called ABCfitness saying due to my outstanding charges with the BXNG Club, I would be sent to collections." The member noted their sister faced similar charges but managed a refund after a fight, lamenting, "Looks like I’m just screwed. I will never see that money again." They reported unreturned calls, undelivered emails, and no assistance from other locations, highlighting a broader concern: "I wonder how many people have had something similar happen to them."
San Diego’s Victory MMA, a local competitor, weighed in on the closure via Instagram, offering support while critiquing The BXNG Club's practices. "Our sincere condolences to the loyal and committed staff of the BXNG Club and to the club’s members," the post read, adding, "They did not deserve this outcome which was caused by selfishly putting personal greed in front of the interests of their employees and their members."
Victory MMA extended a lifeline, offering BXNG instructors and fighters a free three-month membership, and members a free week, a waived $99 joining fee, and $85 monthly rates without contracts at their Clairemont location, with plans to reopen a renovated 22,000-square-foot facility in Point Loma. They also pledged to honor "Paid in Full" contracts for those "scammed" by BXNG, emphasizing a no-frills approach: "We chose to use light bulbs from Home Depot and bought our sound system for $1,500 at Best Buy, so we can keep our prices low for the people that count, our loyal and appreciated members."
For San Diego, losing The BXNG Club - a pioneer since 1999 under its original Boxing Club name - stings. Its luxury gyms offered boxing, kickboxing, Muay Thai, Jiu-Jitsu, yoga, and HIIT classes, drawing fitness buffs with top-tier coaches and amenities like saunas and cryotherapy. As of March 22, all BXNG Club doors will lock for good, ending a chapter for a brand that fought to balance growth and grit.
For more information, visit thebxngclub.com.