Bally Total Fitness files Chapter 11 bankruptcy

[The_Punisher]

hahahaha...it's about time these morons realizet hat they're no longer the place to workout


Bally Total Fitness files Chapter 11 bankruptcy

NEW YORK (Reuters) - Bally Total Fitness Holding Corp (Other OTC:BFTH.PK - News), one of the largest U.S. health club operators, has filed for bankruptcy protection, after struggling in recent years with membership declines and too much debt.

The Chicago-based company and more than 40 affiliates filed for Chapter 11 protection from creditors on Tuesday with the U.S. Bankruptcy Court in Manhattan.

Bally listed $396.8 million of assets and $761.3 million of debts as of December 31, court papers show.

The company said the reorganization process will not affect memberships or operations at its more than 375 health clubs. It also intends to keep paying employees and vendors.

Bally will seek approval of a "prepackaged" reorganization plan supported by holders of much of two bond issues.

It said the plan would reduce debt by $150 million and provide $90 million of capital through a rights offering backed by affiliates of Anschutz Investment Co., Goldman Sachs Group Inc (NYSE:GS - News) and Tennenbaum Capital Partners LLC. Existing stockholders would receive nothing for their shares, Bally has said.

Bally also said it lined up $292 million of financing to fund operations during and after bankruptcy proceedings. It hopes to emerge from Chapter 11 "as promptly as possible."

Bally has struggled in recent years to attract new members, and in March said it expected continued membership declines through at least 2008.

Among the affiliates that are reorganizing is Jack LaLanne Holding Corp., named for the fitness and nutritional expert, court papers show.

Bally said Jefferies & Co. and the law firm Latham & Watkins LLP are advising it on the bankruptcy process. It said a committee of bondholders retained Houlihan Lokey Howard & Zukin Capital and the law firm Akin Gump Strauss Hauer & Feld LLP as advisers.

Shares of Bally closed Tuesday at 41 cents on the Pink Sheets.



http://biz.yahoo.com/rb/070801/ballytotalfitness_bankruptcy.html?.v=1

[jaejonna]

noooooooooooooooooo!!!!!!!!!!! I only pay 12 bucks a month ...how can this be, there are  people signing up everyday  and they just got new equipment ?

[Stark]

noooooooooooooooooo!!!!!!!!!!! I only pay 12 bucks a month ...how can this be, there are  people signing up everyday  and they just got new equipment ?

hahahahahahahah

[rockyfortune]

it's about time people realized they were getting ripped off by the scheisters...

[jaejonna]

it's about time people realized they were getting ripped off by the scheisters...

I dont think its a rip off...all other gyms charge so much anyways. Im a 'lifetime member' and I started paying like 40 bucks a month but been with them since 99 now i pay a measly 12 bucks. I have enuf money to go to the gym in my building but ballys was handy cause you could travel most places and use thier gyms. fuggin Globo gym ...

[Brutal_1]

hahahaha...it's about time these morons realizet hat they're no longer the place to workout

http://biz.yahoo.com/rb/070801/ballytotalfitness_bankruptcy.html?.v=1

 

It was just a matter of time...

[thisiskeith12]

Bally listed $396.8 million of assets and $761.3 million of debts as of December 31, court papers show.

Who the hell is running that show?

[Brutal_1]

ballys is a bunch of assholes their equipment is a piece of shit and they have retarded CONTRACTS for years saying you have to pay them and go to that gym no matter what.

Not only that they have memberships that allow people to go on certain days of the week?   So stupid.

PLus they smell like ass and no body in shape or motivating what so ever goes there.. place is like a stuffy fat camp.

LOL, I didn't know they were all like that, which one did you go to???

[onlyme]

Wondering how long 24 hour fitness can last being in the red so long.  They have a lot of clubs and spend a lot of money opening them.  They are all corporate gyms.  I mean these guys spend $5 million to open a club and how long does it take to make that back. 

[The_Punisher]

LA Fitness must be doing something good. I saw one opened in my area 2 months ago, and that beoouch is packed every freaking day

[willie mosconi]

there is one in west LA off of Venice Blvd. near Overland that isn't too bad. Actually has decent equipment.

[willie mosconi]

they have very good equipment. Lots of variety and its consistent in every club. the facilites are super clean.

yeah, my gf works out at ballys. i went with her one time. of course their equipment isn't close to the level of gold's, but it isn't bad either. the only things i didn't like are that the dumbbells only go up to 110 or something (which isn't a problem for me now, but might be someday soon) and their leg press is kinda shitty

[LurkerNoMore]

Years ago, I ended up having to go to the sheriff's office and file Theft and Fraud charges against them.  Bunch of crooks.

[willie mosconi]

Years ago, I ended up having to go to the sheriff's office and file Theft and Fraud charges against them.  Bunch of crooks.

what did they do to you? elaborate please

[HUGEPECS]

Bally's has screwed up people real good in the past. Fcuk them. I hope they never recover. period

[Chico_Holiday]

That is pitiful...-$364.5 million in shareholder equity

Someone took notes in Accounting 101............A = L + S/E

 

[tweeter]

Someone took notes in Accounting 101............A = L + S/E

 

Correct; this is one of the lowest equity numbers I can remember seeing.

[L.T.]

bally Canada went bankrupt 6 months ago. They owed 90 million. The clubs were bought by goodlife and extreme fitness from the trusty. It was only a matter of time before the same happend in the United States.

[Vince B]

I've talked with Onlyme about gyms and profitability and can't understand how so many survive in America when they give away memberships. By giveaway I mean anything less than $70/month for memberships.

Any unemployed super salesman contact my gym. I could use a top notch guy who can sign up people.

[Cleanest Natural]

I have worked at Ballys in the past as a trainer and let me tell u...IT WAS AN EXPIRIENCE ; they taught me how to train , how to sell , how to speak, everything, and I argued with them nonstop until I actually left...made no money there...It was just a plain weird expirience.

[onlyme]

The problem with these gyms are they are all corporate owned.  When one fails it affects the whole company.  They spend so much money building and opening these gyms I don't see how they ever make money and most never do.  Like I said 24 Hour has never seen a year not in the red.  Sooner or later.  The thing about Gold's and a franchise is that if a Gold's closed down there were 10 others waiting in line to open another franchise.  The corp. never lost money.  This way it also gives the corp a lesser value.  that is why Gold's sold for so much less than 24 Hour.  they had all that paper showing they were bringing in all this money.  But it still didn't cover costs.  WHen Pete had Gold's there were over 660 gyms in over 30 countries.

Imagine what that would have been worth if they were all corporate gyms.  Plus Gold's made a shit load of money on apparel sales in retail market.  At one time I heard Gold's generated over $1.9 billion dollars worldwide in a year.  That includes memberships sales and retail sales.  A big difference between corporate and franchising.  Just imagine if Pete kept the apparel in-house and not licensed that out among the other items.  These other gyms are greedy and thats why they are failing.  Gold's now is getting the same way.  Buy up gyms and make them corporate then sell off.

[Blockhead]

 On another note...

 WENDY's profit tripled by this time in 2007 -vs-2006.

 Fat ass America!