Although the list of The Fitness Experience creditors has not yet been filed with the Chicago court where it filed for Ch. 7 liquidation late on Jan. 21, a creditors' meeting has been set and at least one company has revealed part of its debt.
In a quarterly earnings call by Life Fitness-owner Brunswick Corp. on Jan. 27, the company said that its fitness division suffered losses in operating margins due to a bad debt stemming from a "bankruptcy filing" of a "consumer fitness customer." That debt, the company stated was $2.4 million, which meant a large hit on operating margins despite revenues in the fourth quarter for Life Fitness being up 10 percent. (For its quarterly financial report, see our SNEWSÂ® Fitness Financials, Feb. 3, 2005.)
Life Fitness is one of at least two TFE suppliers who have both unsecured and secured debt. A full list of both unsecured and secured creditors and their debt is expected to be filed soon with the U.S. Bankruptcy Court, Northern District of Illinois, Chicago, where the case is being heard by Judge John H. Squires.
In other news pertaining to the bankruptcy:
> The first meeting of creditors will be March 1, 2:30 p.m., at the DuPage Courthouse, 505 N. County Farm Road, Room 2000, Wheaton, IL 60187.
>> TFE President Doug Pearson, who was in line to be named chairman of the National Sporting Goods Association's board in about 18 months, has resigned from the board "for business reasons," according to an NSGA statement. In his stead, the board has elected A.J. Blanchard, executive vice president-hardgoods of Academy Sports & Outdoors, of Katy, Texas, as treasurer/chairman-elect. Pearson has been an NSGA member for 20 years.
For more details about the bankruptcy filing of TFE, see the SNEWSÂ® story, Jan. 24, 2005, "Financial woes force The Fitness Experience into Ch.7 bankruptcy liquidation."