85.7 F
San Fernando
Friday, Mar 29, 2024

Bally Could File Chap. 11

Bally Total Fitness said in a financial filing that it is exploring filing Chap. 11 as a result of lower membership revenues and increased operating expenses. Bally also noted in its filing that some of its membership figures may have been misstated in 2006. The fitness club operator, with seven facilities in the San Fernando Valley, said it is exploring a “broad range of options” to restructure its debt obligations, which stood at approximately $827 million including $19 million in letters of credit as of March 14. Bally expects to report a loss from continuing operations for 2006. The company said that revenues collected from memberships are expected to be down by about $25 million for 2006 compared to 2005, and it expects the trend to continue through the remainder of the year.

Featured Articles

Related Articles