Bally fitness centers to close in Greenwood and Indianapolis

The Daily Journal of Johnson County

Two teens went to Bally Total Fitness in Greenwood for a swim, but the pool was closed, and a sign on the door informed them the entire club will close next week.

Bally is closing its Greenwood fitness center after 20 years in operation as part of its efforts to exit from bankruptcy by restructuring, said Larry Larsen, company spokesman.

The company has been operating under Chapter 11 bankruptcy for the past six months.

During that time, company officials evaluated all their leases, Larsen said. The company tried to renegotiate lease agreements as best it could but in some instances couldn't come to favorable terms, he said.

As a result, the company will close clubs across the country, including the one in Indianapolis and the one in Greenwood.

The restructuring is part of a deal the Chicago-based company reached with its senior lenders, including JPMorgan Chase, which have agreed to cut Bally's debt by at least $660 million, according to Reuters news service.

As part of the agreement, Bally's lenders will get 94 percent of the restructured company's equity, according to Reuters.