Bally Total Fitness Files for Bankruptcy Protection

Gyms will stay open

Wednesday, Dec 3, 2008  |  Updated 12:16 PM CDT
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Bally Total Fitness Files for Bankruptcy Protection

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Bally's Total Fitness will stay open despite filing for bankruptcy protection.

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Bally Total Fitness, which operates 16 gyms in the Dallas-Fort Worth area filed for bankruptcy protection for the second time in 17 months, and put itself up for sale.

The gym operator will continue operating using cash reserves.

Chief Executive Michael Sheehan in a statement said, "The burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets," left no alternative other than a bankruptcy filing, despite "marked improvement" in Bally's operating results.

The company said on Wednesday it has received "strong" interest from prospective purchasers and is in "active and advanced" talks with some lenders on an agreement to buy its assets.

It said if it negotiates such an agreement, lenders would provide it with financing to conduct day-to-day operations.

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