My Employer Has Filed for Bankruptcy Protection . . . Again

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.

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."

Makes me glad I am going back to school.

Tags: Bally Total Fitness, Bankruptcy Protection, Chapter 11, economics, work, life, business