A gym near me just did this to all their members. They collected everyone’s membership dues, next day locked the door and said they were out of business. Second time that owner has done that at his facilities, and he is a lawyer so the likelihood of those members ever seeing that money again is slim.
That however does create opportunity for gyms around that business, and I have definitely seen an increase in my own clientele from it. I feel sorry for members that have to go through that kind of transition, but it sounded like that specific place wasn’t well run anyways and now people can find a better place that will take care of them more.