YouFit Health seeks dismissal, says plan confirmation not feasible

By Sarah Lizee

Olympia, Wash., May 28 – YouFit Health Clubs, LLC filed a motion Thursday seeking dismissal of its Chapter 11 bankruptcy case by the U.S. Bankruptcy Court for the District of Delaware.

The company said that following the passage of the government bar date on May 10, and after having taken into account the extent of priority claims that may be due and payable under the proposed plan, the debtors determined, after consultation with the official committee of unsecured creditors as well as the debtor-in-possession lenders and the pre-petition lenders, that confirmation and consummation of the proposed plan is no longer feasible and, therefore, no longer in the best interests of the debtors, their estates, or their creditors.

YouFit said that following the sale of substantially all of its assets, the value of the estate has diminished, and there is no business to reorganize.

The company said the case should be dismissed due to the substantial or continuing loss to, or diminution of, the estates, as well as the absence of a reasonable likelihood of rehabilitation.

A hearing is scheduled for June 23.

YouFit is a gym chain with headquarters in Deerfield Beach, Fla. The company filed Chapter 11 bankruptcy on Nov. 9, 2020 under case number 20-12841.

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