On December 16, 2020, In-Shape Holdings, LLC, of Stockton, CA, a health club operator that had operated 65 clubs prior to the Covid-19 pandemic, and two affiliates filed petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case 20-13130). The company reports $50 to $100 million in assets and $100 to $500 million in liabilities. The company has entered into an asset purchase agreement for substantially all of the debtors’ assets with an existing lender and co-investors as stalking horse, for a purchase price of a $45.3 million credit bid of the DIP and prepetition obligations. The stalking horse would assume leases relating to up to 45 clubs. Prepetition first lien lenders would also provide $30.6 million in DIP financing. A link to In-Shape Holdings, LLC’s chapter 11 petition can be found here.
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