Bally Total Fitness, where I work as a personal trainer, has filed for Chapter 11 bankruptcy protection again, after emerging from the same situation slightly more than a year ago as a privately held company. Not good.But the company maintains that if a buyer cannot be found their new and improved business model (which we're already not enjoying at the club level) with be able to pull them through the reorganization process.
Makes me glad I am going back to school.Michael Sheehan, Chief Executive Officer of Bally, said, "Over the past five months, Bally has significantly improved its operating processes and expense management and streamlined its organizational structure, leading to a marked improvement in Bally's current and projected operating performance. Unfortunately, the burden of Bally's long-term indebtedness, coupled with the lack of refinancing options in today's constrained credit markets, have limited our ability to restructure using out-of-court vehicles, leaving Bally with no alternative other than the actions announced today."He added, "The chapter 11 process provides the best means for Bally to emerge a stronger, healthier company. With the opportunity to restructure our balance sheet and significantly reduce our indebtedness, Bally will have the ability to invest in our clubs and fund future expansion, which will ultimately benefit members and all stakeholders.""Bally will remain a strong national brand and industry leader, serving over 3.1 million members from coast to coast."
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2 comments:
Life is getting mighty tough out there! Good luck, Bill, leaping about, making your life work. Fortunately, with all your ability, you will have many options.
Thanks Tom,
I'm not too worried yet - they won't close the doors any time soon. But I am glad that I am getting out of the business, probably within the next year.
Hope you are well,
Bill
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