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Article: PE Health Chains On The Ropes; Health clubs are starting to face pressure from the economic downturn, forcing some to go into bankruptcy.(Private Equity)
- Article from:
- Investment Dealers' Digest
- Article date:
- May 15, 2009
- Author:
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Byline: Kelly Holman
There's an old adage about working out that goes: "no pain, no gain."
The same could be said of trendy New York fitness chain Crunch, which recently filed a prepackaged bankruptcy, as well as the overall health-club industry in 2009. In Crunch's case, Angelo Gordon & Co.will acquire the fitness concern out of Chapter 11 alongside former 24 Hour Fitness executives Mark Mastrov and Jim Rowley.
Angelo Gordon declined to discuss the bankruptcy, while Crunch executives were unavailable for comment.
Crunch has faced several challenges, including onerous leases it inherited from Bally Total Fitness Corp. and not signing ...