MANHATTAN (CN) – Bally Total Fitness filed for Chapter 11 bankruptcy Wednesday, for the second time in 2 years, listing more than $1 billion in debts.
The Chicago-based gym operator was delisted from the New York Stock Exchange last year after defaulting on $800 million in debt.
Bally told The Associated Press it plans to reorganize or sell itself, but will continue to operate. It claims to have buyers interested in purchasing its 347 gyms with a claimed membership of 3.1 million.
Bally owes its top creditors the U.S. Bank National Association $247 million and HSBC Bank $231 million. And it owes millions in legal fees to a variety of law offices, according to its filing.
Bally has been sued at least 360 times since 2005 – at least 19 of them class actions – according to the Courthouse News database.