![]() It didn’t help that throughout its history, it has been the target of too many consumer complaints regarding its billing practices. Many say it was a bad combination of too much debt, along with various global economic crises over the years. It seems shocking that a hugely successful chain of fitness center would meet such an ignominious end, but that’s what happened to Bally Total Fitness. In 2010, the Texas Attorney General also announced that Bally Total Fitness mailed over 11,000 fake past-due notices to former members.The brand, according to the allegations, also underestimated its 2003 net loss by $90.8 million. The SEC alleged that Bally overstated its originally reported stockholder’s equity by roughly $1.8 billion in 2001, thereby inflating it by more than $340%. In 2008, the SEC filed financial fraud charges against Bally.As a result, Bally was forced to restate its financial statements for 1997 through 2003. The US Justice Department joined the investigation in 2005. Also in 2004, Bally also revealed that their accounting policies was under investigation from the U.S.In 2004, several customers also alleged that they were misled into signing loans, due to documents using confusing language.From 1999 to 2004, more than 600 customers complained to the NY Attorney general’s office, resulting in an investigation and the agreement of Bally Total Fitness to reform its sales practices.This website published various complaints from bally customers. In 1997, the Bally Sucks website was born.In 1994, the brand had to pay $120,000 to settle FTC charges for illegal practices for billing, cancellation, refund, and debt-collection.It also didn’t help that throughout its run, Bally Total Fitness has been targeted by many complaints from consumers over its billing practices. The last Bally location closed down in 2016, and it became totally defunct as a fitness club brand. But that didn’t really help in the long run. ![]() One of the most notable sales was the sale of 171 clubs in 2011, for the sum of $153 million. Over the years, the brand would then sell off various facilities for enough money to pay off the debts. It didn’t help that the stock price came down from a high of $37 per share to just $0.37 over a span of 10 years. Its debts would climb up to $761 million, prompting the first filing for bankruptcy. At the time of its IPO, it was already $300 million in debt. One of the main reasons for the fall of Bally Total Fitness is that the company couldn’t seem to manage its debts. ![]() By 2007, it had about 400 facilities in 29 states, along with locations in other countries such as China, South Korea, Canada, and Mexico. ![]() In 1998, it was spun off from the parent company and it was even listed at the NYSE.Īnd still the Bally Total Fitness brand grew bigger. ![]() They owned 325 health clubs spread out over the US and Canada. The Bally Total Fitness brand was established in 1995 to consolidate all the different brands they purchased.īy 1995, Bally Total Fitness was the largest owner and operator of health clubs in the whole world. And it still grew larger, expanding with additional purchases of the American Fitness Centers and Nautilus Fitness Centers. The company set up a new division for these new purchases.īy 1987, Bally was already the largest owner and operator of fitness centers in the entire world. It also purchased Lifecycle, which made exercise bikes. That was when Bally Entertainment (which manufactured slot machines and arcade games) bought Health and Tennis Corporation of America. The history of Bally Total Fitness started out in 1983. If that’s the case, then Bally Total Fitness is a great example of how even a seemingly successful brand at the top of the industry can fall off the top so quickly. Perhaps you’re doing a historical retrospective on failed fitness gym brands. That’s impossible, since there’s no gym by that name. Why are you reading up on Bally Total Fitness? It can’t be because you’re doing research to see if you should join a Bally Total Fitness gym. ![]()
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