Bally's files for bankruptcy

NEW YORK -- Bally Total Fitness Holding Corp, one of the largest U.S. health club operators, has filed for bankruptcy protection after struggling in recent years with membership declines and too much debt. The Chicago-based company said the reorganization process will not affect memberships or operations at its more than 375 health clubs. It also intends to keep paying employees and vendors. Bally listed $396.8 million of assets and $761.3 million of debts as of Dec. 31, court papers show. The company and more than 40 affiliates filed for Chapter 11 protection with the U.S. Bankruptcy Court in Manhattan.