Bally Fitness Is Not Fiscally Fit.
By Rachel Lynn Foley, Kansas City, MO, Bankruptcy Attorney on Dec 3, 2008 in Bankruptcy Cases & Legislation
Bally Fitness filed for Chapter 11 protection in the Southern District of New York today, December 3, 2008. Bally just emerged from a Chapter 11 Bankruptcy a little over a year ago an an attempt to manage $800 millon dollars of debt. This time they have about $811 millon dollars of debt and will look to either sell off the corporation or reorganize.
As the economy continues to falter, people will continue to cut expenses anywhere that they can. The choice is quickly becoming a decision between working out or putting food on the table. Although some would prefer to work out the majority of people are going to choose to put food on the table and walk around the block for fitness. Bally is also caught up in the lack of lending from the banks. If a corporation does not have access to a line of credit or credit reserve they may not be able to pay their ongoing operating costs which leads to a higher debt load.
Hopefully Bally Fitness can emerge from this Chapter 11 unscathed. If they do not and if the corporation has to shut down or if they have to do massive layoffs this will result in the domino effect on the economy pushing us closer to a depression.  If you have a membership with Bally or you about to sign up for a membership, I would be careful about pre-paying for any services until such time as Bally Fitness becomes fiscally fit and able to stand on its own again.
Written by Rachel Lynn Foley, Kansas City Missouri Bankruptcy Attorney.
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