Bally's Fitness files for bankruptcy

[quirkysmilin]

Tweethttps://biz.yahoo.com/ap/081203/bally...ptcy.html?.v=8



AP
Bally Total Fitness again files for Chapter 11
Wednesday December 3, 3:53 pm ET
By Betsy Vereckey, AP Business Writer
Bally Total Fitness files for Chapter 11 bankruptcy; second time in less than 2 years


NEW YORK (AP) -- Bally Total Fitness Corp. filed for Chapter 11 bankruptcy protection on Wednesday for the second time in less than two years, hindered by debt and limited refinancing options amid the credit crunch.
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The Chicago-based gym operator will use existing cash reserves to continue operating. Bally, which again filed in the U.S. Bankruptcy Court for the Southern District of New York, plans to sell itself or reorganize under Chapter 11.

Early last year, faced with more than $800 million in debt and $45 million in cash, Bally defaulted on its debt. The company's shares were delisted from the New York Stock Exchange for failing to meet minimum price and market capitalization requirements. Bally also was delinquent in filing its 2006 annual report because of errors in historical member data.

At that time Bally filed for Chapter 11 in a "prepackaged" bankruptcy plan that helped simplify the process under the control of Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund LP, which invested about $233.6 million in exchange for Bally's common equity. It emerged in the fall of 2007 as a private company.

Chief Executive Michael Sheehan, who was appointed this June, said Bally's long-term debt and lack of refinancing options left it with limited alternatives, despite ongoing efforts to cut expenses and streamline operations. Sheehan replaced Bally's previous CEO, Paul Toback, who left in 2006.

Bally's spokesman Larry Larsen declined to comment on possible gym closings or membership trends.

According to CapitalIQ, a financial information service, Bally's has total debt of $811.3 million and cash and short-term investments of $70.8 million. Total assets are listed as $411.4 million.

Unlike last year, Bally is not filing with a "prepackaged" bankruptcy plan, which would have helped shorten and streamline the process. Still, Bally said it hopes to emerge from bankruptcy as quickly as possible.

Bally has retained Kramer Levin Naftalis & Frankel LLP as bankruptcy counsel and Houlihan Lokey Howard & Zukin as financial advisers.

Founded in 1983, Bally operates 347 facilities nationwide that serve at least 3.1 million customers.

[BABY1]

TweetFuzo and I were Bally's members for many years. The Bally's clubs around here have been going downhill for awhile.

[6p6]

Tweetthat stinks

[JsJs24]

TweetMaybe the government will give them a bailout too..lol.

I never have been to a Bally's, are they any good?

[FUZO]

TweetYEAH THERE GOOD BUT SINCE NEW CLUBS LIKE XSPORT AND LIFETIME AND OTHERS HAVE BEEN COMING OUT BALLYS HAS BEEN SINKING.

[JsJs24]

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YEAH THERE GOOD BUT SINCE NEW CLUBS LIKE XSPORT AND LIFETIME AND OTHERS HAVE BEEN COMING OUT BALLYS HAS BEEN SINKING.

I prefer Gold's myself. 24hour is ok too.

[TheChosen1]

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I prefer Gold's myself. 24hour is ok too.

Same here. I've been a loyal Gold's Gym member for many years.

[deepsouth]

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Fuzo and I were Bally's members for many years. The Bally's clubs around here have been going downhill for awhile.

Same here- the wife and I were member for years, but they never fixed anything and the kids club-sucked, so we moved to 24hr and love it

[TexSon]

Tweetlove 24 hour fitness.

[TexSon]

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Maybe the government will give them a bailout too..lol.

I never have been to a Bally's, are they any good?

I never liked em. kinda the motel 6 of chain fitness clubs.

[Doink the clown]

TweetThey always seemed like they could never really get ahold of the market to me.I hate to see anyone lose their jobs too. Once i met a guy at a bally's who needed to bench a near max and asked me to spot/critique his form for an upcoming meet he was in.We met about halfway due to the distance thing and the only gym was a bally's.
Well, when he loaded up around 425 and was just about to get under the bar, a little scrawny employee came over and said "Umm, i'm sorry you guys can't be using.........." Well this guy had now been in his wraps/Bench shirt for about 5 min and if you have ever worn these fine bits of apparel you know what i'm talking about. He didn't even let this guy finish talking before he screamed "Shut the f*** up and watch how men train!!!". The whole gym was dead, i mean dead silent as they in all their black swishy pants and white t-shirts watched this guy bench. He got it easily as it wasn't his max weight but the guests actually started cheering and half-azz clapping for him. When he stood up he told the llil guy "you can go now". A funny moment at bally's.

[snickers1]

Tweeti have always like la fitness myself

[TexSon]

Tweetlove la fitness clubs. bunches of them here in houston.

actually, bunches of everything here in houston.

[Slightly Enhanced]

Tweetresearch shows that gym memberships are the first item to be cut from the budget when people start feeling the money crunch