http://www.reuters.com/article/ousiv/idUSN0139351820070801 By Jonathan Stempel NEW YORK (Reuters) - Bally Total Fitness Holding Corp (BFTH.PK: Quote, Profile, Research), 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 (GS.N: Quote, Profile, Research) 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.
HAHAHHAHA BALLYS.. SCREW YOU!!!!!!! This is what you get for screwing with THOUSANDS of PEOPLE! ps. hopefully this will help me out of the BS contract they scammed me into a couple years ago..
I notice that they don't have the prices listed on the website. Rather than make it simple by allowing people to just sign up, they pretty much force you to listen to a CSR try and sell you their most expensive plan...
Bally's is/was known for pressuring to sell you the most expensive plan & lock you into a long term contract so you pretty much get screwwwwed
C'mon, brah! Bally's will bounce back! By the way, your BMI is waayyy too high chief! You really need to blast those abs. Just sign this 3 year contract...think of it as a doorway to looking awwweesome.
I joined them almost 10 years ago and never wanted to do so again. Hated the contract, the crowded facilities with jackholes staring holes into you as you were using the ellipitical THEY wanted, etc. Had a really cool trainer (bounced around NFL special teams and practice squads). Lifetime, LA, and 24 Fitness have run them out, and good for them.
The Bally at Gessner & i10 can get super crowded. However, the i10 and barker one is new and isn't crowded at all and basically empty friday through sunday. Btw, the 24's in the Galleria area and the one on dairy ashford and westheimer get ridiculously packed. Bally also does month to month contracts.
Yup.. I remember them screwing me into a bogus contract when I was 18. Its never good if your company's employees are a bunch of scam artists.
First Blockbuster now Bally's Let this be a lession on what crappy business practices and stupid fees do to your bottom line. Take care of your customers.
