Big Changes at Bally and Crunch
CHICAGO – In the U.S., Bally Total Fitness announced that it has emerged from Chapter 11 bankruptcy having completed the reorganization outlined in its Amended Joint Plan of Reorganization, which was confirmed on August 19.
“Bally is moving in the right direction as we continue to systematically improve every aspect of this company,” says CEO Michael Sheehan. “With the dramatic restructuring of our balance sheet and improved financial performance, Bally is now positioned to put 100 percent of our energy towards improving the customer experience and growing our business.”
The approved plan, which includes financing from several sources, will enable Bally to reduce its debt by approximately $700 million to less than $100 million.
‘The unparalleled financial flexibility we have after emerging from bankruptcy will allow us to make the investments necessary to build Bally into the preeminent fitness chain in the country,” said Sheehan. “We have the right team in place and a strategy that will allow us to offer our
customers the best experience in the industry.’
American club chain Crunch announced that the Bankruptcy Court for the Southern District of New York has approved its sales to an investor group led by New Evolution Fitness Company. The transaction is expected to close by mid-September.
“Crunch will emerge debt free with a leaner, stronger portfolio of clubs in four markets,” says chairman Mark Mastrov. “This new ownership group and capital structure will allow Crunch to grow strategically while continuing to provide our members with a fresh and innovative fitness experience. We’re exiting this process with a plan for strong growth in our core markets of New York, San Francisco, Los Angeles and Miami and intend to establish new locations quickly.
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