Photo by BosoI just can't resist the pun opportunities presented by Bally's second bankruptcy filing in 14 months. Apparently, Bally has not internalized its own core message to its customers: you have to burn more calories than you take in (in other words, burn off more debt than you take on). With $1.4 billion in assets and only $479.5 million in net revenue for the 9 months ended September 30, 2008, Bally's $1.5 billion in debt leaves its balance sheet looking almost as flabby as it did when the company went on its first crash bankruptcy diet in 2007. Bally's personal trainer--Bankruptcy Judge Burton Lifland in the Southern District of New York--now has the second case, even before he had finished up the final details on the last one! Rather than focusing on toning up its balance sheet, Bally appears ready to throw in the towel and pursue a negotiated sale. One hopes the new owners will impose a stricter nutrition/workout regime on Bally, unlike the bloated hedge-fund firm that now owns it (these hedge funds are becoming infamous for their force-feeding of other formerly fit companies like Mervyn's).
Thats wonderful how easy ballys can cheat their creditor but god forbid if costumers try to break their contract.....that s a workout i don't wish even to my worse enemy.
ReplyDeleteI hear you, Anon! I have the distinct sense that part of Bally's problem was (is) its overly aggressive pursuit of its customers, as you describe. My gym's collection company tried the same nonsense with me--they tried to collect an extra month at the end of my contract. Luckily, saner heads at that company prevailed, and I haven't heard anything since I refused, but Bally's has a reputation (so far as I am aware) of not letting simple contract disputes drop. If my sense is correct, I'm glad to see one more instance of bad business practices (especially crappy customer service) ruining otherwise healthy businesses.
ReplyDeleteI am a small HVAC contractor in Upstate New York. I installed a roof-top HVAC unit for Bally's. Two days after the job was done I was told that the $13,000 they owed me wasn't going to be paid,(NICE). To be able to get a brand new HVACsystem for nothing and hurt a family of 4 trying to survive. They deserve to be closed down and no benifits to CEO's. They are legal thieves and our NY judges should be ashamed for letting them steal from honest working people. Whats wrong with this country?? If the normal person steals a loaf of bread to eat, he goes to jail. Bally's just goes on to tv ads and to stay open, business as usual, only to steal more from the little guys.
ReplyDeleteI am having the same problem over here in the NYC city area I did a lot of jobs for Ballys they didnt pay me. We are a small company , How can I find a way to get my money from them?
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