Sale of Sports Clubs of Canada and Bally Total Fitness Clubs in Toronto
Bally Total Fitness (NYSE: BFT), one of the largest operators of fitness centers in the U.S., announced today that it has entered into agreements to sell its 16 Toronto, Canada facilities to Extreme Fitness, Inc., which is acquiring six of the facilities, and GoodLife Fitness Centres Inc., which is acquiring ten of the facilities.
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CHICAGO, April 25, 2007 —
Bally Total Fitness (NYSE: BFT), one of the largest operators of fitness
centers in the U.S., announced today that it has entered into agreements to
sell its 16 Toronto, Canada facilities to Extreme Fitness, Inc., which is
acquiring six of the facilities, and GoodLife Fitness Centres Inc., which is
acquiring ten of the facilities. The properties include nine Sports Clubs of
Canada and seven Bally Total Fitness clubs. The transactions are subject to
customary closing conditions, including lease negotiations. Terms of the
transactions were not disclosed.
The sale is part of the Company’s strategy to divest non-core assets in
order to focus on the core Bally Total Fitness brand and operations in the
United States. Proceeds from the transactions are estimated to be
approximately $19.6 million (Canadian) and will be available to support
operations.
“These transactions are important steps forward in Bally’s business and
financial restructuring initiatives. The proceeds will enhance Bally’s
liquidity in support of the Company’s ongoing efforts to negotiate a
consensual restructuring with our debt holders,” said Don R. Kornstein,
Bally’s interim Chairman. “I would like to acknowledge all of our Canadian
employees for their dedicated service to Bally Total Fitness and wish them
continued success.”
About Bally Total Fitness
Bally Total Fitness is among the largest commercial operators of fitness
centers in the U.S., with over 400 facilities located in 29 states, Mexico,
Canada, Korea, China and the Caribbean under the Bally Total Fitness(R),
Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally offers a
unique platform for distribution of a wide range of products and services
targeted to active, fitness-conscious adult consumers.