YouFit Health Clubs Chapter 11 bankruptcy case dismissed by court

By Sarah Lizee

Olympia, Wash., June 24 – YouFit Health Clubs, LLC’s Chapter 11 bankruptcy case was dismissed by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Thursday.

As previously reported, the company filed a motion seeking the dismissal after consultation with the official committee of unsecured creditors, debtor-in-possession lenders and the pre-petition lenders.

YouFit 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 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.

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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