Bally Ousts CEO, Ends Its Search for Buyer
Bally Total Fitness Holding Corp. announced the ouster of Chief Executive Paul A. Toback and said its search for a buyer had been unsuccessful, sending its shares sharply lower.
The Chicago-based operator of 390 fitness clubs elected Don R. Kornstein to serve as interim chairman and Barry R. Elson as acting CEO. Both were on a dissident slate of board members nominated by hedge fund Pardus Capital Management, a major shareholder, and elected in January.
Bally, which has struggled to attract new members and has had to restate five years of financial reports, said it would focus on alternative plans for refinancing or restructuring now that it had ended its quest for a sale.
The company’s stock fell as much as 35% in early trading to an all-time low. Shares closed at $2.76, off $1.19, or 30%.