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Bally Total Fitness Files for Chapter 11

Fitness center chain back in bankruptcy court

By Mark Huffman
ConsumerAffairs.com

December 4, 2008
Bally Total Fitness needs more abdominal crunches and fewer credit crunches. The chain of fitness centers has filed for Chapter 11 bankruptcy protection for the second time in two years.

The company said it remains mired in debt and now has fewer refinancing options because of this fall's credit meltdown. It said it planned to use its existing cash reserves to keep operating.

Bally entered bankruptcy in early 2007, reporting debts of $800 million and $45 million in cash. It suffered the humiliation of being delisted by the New York Stock Exchange as its stock price plunged.

A Bally spokesman declined to comment to media outlets on whether it would close gyms or otherwise curtail business activities.

Consumers posting on ConsumerAffairs.com have complained recently of changes at their particular Bally's location.

"The maintenance of the women's locker room at this club is atrocious," Constance, of New York, told ConsumerAffairs.com this week. "The staff of porters who maintain the locker room when the club is open was laid off about two weeks ago, showers heads break, are removed, but not replaced, at one point 3 out of 4 sinks were out of order and remained so for weeks. We were just notified that towel service will end on December 15."

Katherine, of San Jose, California, wrote last month to say the water in the Bally's heated swimming pool had suddenly gotten cold. And she's not the only once who felt the chill.

"They just remodeled the pool. Ever since, they are cutting costs and the pool is ice cold," said Debra, of West Covina, California." I was told health department requires it to be at 80 degrees. Just called the health department and told they have said no such requirement. Was then told their corporate office ordered the water to be 80 degrees."

Bally Total Fitness was founded in 1983, and currently operates 347 facilities nationwide.

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