# Bally Total Fitness may file for Chapter 11



## Arnold (Mar 15, 2007)

Gym operator Bally Total Fitness Holding Corp. (NYSE:BFT - News) said on Thursday it may have to file for Chapter 11 bankruptcy protection from creditors if it is unable to restructure its debt.

The company said it has $45 million in cash and $827 million in outstanding debt, adding that it is "exploring a broad range of options" for reducing it.

Chicago-based Bally also said it told the U.S. Securities and Exchange Commission that it is unable to file its annual report for 2006, which is due Friday.

The company said it doesn't know when it will be able to file the report and said it hired Jeffries & Co. as its financial advisor.

Bally also said it expects to post a loss from continuing operations in 2006, with membership revenue falling 3 percent, or more than $25 million less than 2005.

Bally has been struggling in recent years to attract new members. In 2005, the company put itself on the block, but was unable to find a buyer.

The fitness club chain also said membership collections have continued to fall through the first 11 weeks of this year, a trend that will continue "at least" through 2008, Chief Executive Barry Elson said in a conference call.

Elson said the company's strained finances have prevented it from making much-needed upgrades to its facilities in recent years, making it vulnerable to competitors offering sleeker amenities to consumers.

In order to ease Bally's financial woes, Elson said the company will make layoffs, renegotiate rents and close underperforming clubs.

Bally's stock, which closed up 2 cents at $1.99 on the New York Stock Exchange, has plunged nearly 80 percent in the last year.

Bally Total Fitness may file for Chapter 11: Financial News - Yahoo! Finance


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## oaktownboy (Mar 15, 2007)

speaking from a bay area viewpoint, the ballys are in very inconvenient locations...not in major areas and catering to a more feminine crowd..


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## Arnold (Mar 15, 2007)

I am sure that 24 Hour Fitness is not helping matters either.


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## Dale Mabry (Mar 15, 2007)

Great, nice to see the companies that dick people over get the ass-ram.


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## I Are Baboon (Mar 15, 2007)

Screw Bally's.


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## musclepump (Mar 15, 2007)

I work out at Ballys. And I hate them. Glad they're going under.


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## sara (Mar 17, 2007)

Thats what happens when companies like Bally's lie to their members with their contracts


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## KentDog (Mar 17, 2007)

musclepump said:


> I work out at Ballys. And I hate them. Glad they're going under.


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## the nut (Mar 17, 2007)




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## ponyboy (Mar 18, 2007)

I work for them part time and I can honestly say it's one of the worst run companies I have ever seen from a management standpoint.  I'm not surprised by this at all, I just hope they get bought out by someone good who can pump some money into the system.


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## GoalGetter (Mar 18, 2007)

I worked for them briefly and hated every second of it. If they go under it would not be soon enough! good riddance.


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## ponyboy (Mar 23, 2007)

You guys might be interested to know Bally's sold 12 gyms here in Toronto, all to 2 different chains, six to Goodlife Fitness and six to Extreme Fitness.  Including mine.  

Apparently they are planning on pumping $3 million into our club so it looks pretty sweet.  We'll see what happens when the personnel changes take hold but for now they say they are planning on full renovations.


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## Decker (Mar 23, 2007)

sara said:


> Thats what happens when companies like Bally's lie to their members with their contracts


Well put.  The company is shady.


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