Evaluating only YogaWorks’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Lisa Ziegler and Maty Ezraty found YogaWorks in Santa Monica, California, establishing what becomes the US's largest yoga studio chain.
FUNDING
Great Hill Partners takes YogaWorks public on Nasdaq, raising $33M at $5.50/share; stock immediately trades below IPO price.
REGULATORY ACTION
COVID-19 forces closure of all 70 YogaWorks studios in March 2020; company pivots to online classes but cannot cover $55M in lease liabilities.
SHUTDOWN
YogaWorks files Chapter 7 bankruptcy in October 2020, liquidating entirely with $55M in liabilities; all studios permanently closed.
Full Analysis
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Documented cause
YogaWorks was the largest yoga studio chain in the US with 70 locations, backed by private equity firm Great Hill Partners which took the company public on Nasdaq in 2017 at $5.50/share. The company raised $33M in its IPO but was immediately loss-making, with annual revenues of approximately $60M against operating losses of $15M+. High urban real estate leases and instructor costs created structural unprofitability. COVID-19 closed all 70 studios in March 2020; the company filed for Chapter 7 bankruptcy in October 2020 with liabilities of $55M, liquidating entirely rather than restructuring.
Lesson
“High fixed-cost studio businesses cannot absorb demand shocks; digital fallback infrastructure is existential, not optional.”