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Anne Mahlum says she spent about $123,000 of her own money to help former Y7 employees recover eight weeks of unpaid wages after the yoga chain closed. More than 90% of about 150 workers reportedly set up GoFundMe pages to claim wages; the payment does not establish whether all amounts owed have been settled.
Anne Mahlum, the founder of fitness chain Solidcore, says she has spent about $123,000 of her own money to pay eight weeks of unpaid wages to former employees of Y7, the yoga chain that closed all its studios. Her payments offer direct financial help to workers, while questions remain about what Y7’s former owner and operators owe and whether other outstanding wages will be paid.
Mahlum told Athletech News that she advised about 150 Y7 employees to create GoFundMe pages to seek wages they were owed. She said more than 90% of the workers had created a page, and that she paid each participating worker the equivalent of eight weeks of unpaid wages. The reported total was approximately $123,000, paid from her personal funds.
The report attributes the workers’ unpaid wages to a period after Y7’s owner, Fitlab, allegedly stopped paying. That account is attributed to Mahlum and the source report; the supplied material does not include a response from Fitlab or an independent accounting of the payroll shortfall. Some employees told Mahlum they had fallen behind on rent, she said.
Sarah Larson Levey, Y7’s co-founder, said Mahlum contacted her shortly after the studios shut to discuss how to arrange the payments. Larson Levey said she had been stripped of operational control after Fitlab acquired a majority stake in the company. The source does not describe the payments as an official settlement or say that they resolve all claims against Y7 or its operators.
Immediate Relief for Former Y7 Staff
The payments are a personal intervention in a payroll dispute affecting workers after their employer’s shutdown. For employees who had gone weeks without wages, Mahlum’s reported contribution provided money tied to eight weeks of pay and, according to her, helped address urgent expenses such as rent.
The episode also highlights how workers can face financial exposure when a fitness business closes. Instructors and studio staff may depend on scheduled shifts for income, but the source report does not establish how many workers remain unpaid, what total amount is outstanding, or whether another party will compensate them. Mahlum said she hopes the case draws attention to how fitness companies support employees, particularly instructors.
Her action is separate from her earlier decision to share proceeds from Solidcore’s sale with its employees. Athletech News reported that Mahlum sold Solidcore in 2023 for $98.4 million and paid employees $5 million as part of the deal. The Y7 payments, by contrast, concern workers at a company she does not own and are described as coming from her personally.
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Y7’s Closure and Ownership Dispute
Y7, a boutique yoga chain that had 15 studios at its peak before the pandemic, closed all its locations the month before the report. The source material does not specify the exact closure date or provide a full account of the company’s final operating period.
In a September Substack post, co-founder Sarah Larson Levey criticized Fitlab and operator VM Fitness, alleging that they ran Y7 “into the ground” through a series of poor management decisions. Larson Levey also said Fitlab took operational control after acquiring a majority stake. Those are her allegations; the supplied report does not include responses from Fitlab or VM Fitness or independent findings about their management.
The chain’s closure left former employees seeking wages, according to Mahlum’s account. Her GoFundMe-based arrangement created a route for workers to identify their claims and receive her contribution, but the reported payments should not be confused with a determination of legal liability or a company-funded wage recovery.
““This industry means a lot to me.””
— Anne Mahlum, speaking to Athletech News
Outstanding Wage Claims Remain Unclear
The source material does not establish whether all former Y7 employees received payments. More than 90% of about 150 workers reportedly created GoFundMe pages, but it does not say how many ultimately received Mahlum’s contribution, whether the remaining workers were owed wages, or what happened to their claims.
It is also unclear whether eight weeks represents the full amount owed to each worker or only the period covered by Mahlum’s payments. No total for Y7’s unpaid payroll obligations is provided, and the report does not say whether Fitlab, VM Fitness, or another entity has paid or plans to pay any remaining wages. The supplied material contains no response from those companies to the allegations.
Workers’ Claims and Company Responses
The immediate next step for affected employees is to determine whether their individual wage claims have been fully addressed. The report does not identify a scheduled payment, court hearing, regulator action, or company statement, so no formal resolution timeline is confirmed.
Further information from former Y7 employees, Fitlab and VM Fitness could clarify the number of workers still owed wages, the total amount in dispute, and whether Mahlum’s contribution is the only payment made. Until those details are available, her reported $123,000 contribution represents relief for workers—not confirmation that Y7’s broader payroll obligations have been settled.
Key Questions
How much did Anne Mahlum contribute?
Mahlum told Athletech News she spent about $123,000 of her own money on payments to former Y7 workers.
How many weeks of wages did the payments cover?
Mahlum said she paid each participating worker the equivalent of eight weeks of unpaid wages. The report does not say whether that was the full amount owed to each employee.
How many Y7 employees sought help?
Mahlum said Y7 had around 150 employees and that more than 90% had created GoFundMe pages to claim wages. The source does not provide a final count of workers paid.
Why did Y7 employees have unpaid wages?
The source report says workers were left with unpaid wages after Y7’s closure and attributes to Mahlum the claim that Fitlab had allegedly stopped paying. The supplied material does not include a response from Fitlab or an independent determination of responsibility.
Have all of Y7’s wage claims been resolved?
That is not confirmed. The report does not say whether all former employees were paid, whether further wages remain outstanding, or whether Fitlab or VM Fitness will make additional payments.
Source: rss
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