Bally's Total Fitness Clubs May Seek Bankruptcy Protection
Bally's Total fitness, which has several clubs in the Atlanta area, has said it may file for Chapter 11 Bankruptcy protection.
Gym operator Bally Total Fitness Holding said on Thursday it may have to file for Chapter 11 bankruptcy protection from creditors if it is unable to restructure its debt.
The company said it has $45 million in cash and $827 million in outstanding debt, adding that it is "exploring a broad range of options" for reducing it. ...
Bally also said it expects to post a loss from continuing operations in 2006, with membership revenue falling 3%, or more than $25 million less than 2005.
Bally has been struggling in recent years to attract new members. In 2005, the company put itself on the block, but was unable to find a buyer.
...
Elson said the company's strained finances have prevented it from making much-needed upgrades to its facilities in recent years, making it vulnerable to competitors offering sleeker amenities to consumers.
As a previous lifetime member who has had persistent problems with BTF it is now wonder they are losing in this market. I personally brought them 8 new members (one a family of 4)in 3 years (each one gave them my name as reference) and not one person even sent a thank you note. When I went to dispute childcare fees, because my original lifetime membership included it, they revoked my membership. I was met with their legal henchman (Mr. Aquaviva). Here is the clincher: they revoked my membership because I protested them. Not because I did anything wrong in the club but because I chose to invoke my right to protest. It is that simple. Once they get someone as a customer they do everything in their power to drive them away so they can save $$$. Their CFO and bean counters are driving their business and will be the ones who close the door and shutoff the lights when they are out of business.
i have similar issue BTF.while joining the GYM i repeatedly asked for any hidden contracts that im involved in ,and they told no im not.Now Bcos of some reason i want to cancel my account with BTF,but they r telling that im in a contract and i need to pay 800 dollars to come out of the contract.This amuses me alot.I donot think they r doing any business here,they r just doing things without thinking abt the customer.Any suggestions/ideas on this are appreciated.