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Bally Total Fitness CEO Resigns and Shares Fell

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Aug 11, 2006 9:18 pm US/Central

Bally Total Fitness CEO Resigns and Shares Fell

Another Setback for the Nation's Largest Fitness Chain Entails Lower Projections For Cash Contribution

CHICAGO (AP) ― Shares of Bally Total Fitness fell sharply today after the company delivered a triple dose of bad news.

The Chicago-based company announced the resignation of CEO Paul Toback and lower projections for cash contribution. And the company says it is no longer for sale.

Bally's shares dropped $1.19, or 30 percent, to finish at $2.76 on the New York Stock Exchange.

Today's moves in the executive suite come as Bally -- the nation's largest fitness chain -- has seen its stock plunge more than 50 percent this year and had lower-than-expected membership sales.

About seven months ago, a proposal seeking Toback's removal as chairman and CEO failed to get enough votes at Bally's annual shareholder meeting.

Bally has about 400 gyms in 29 states, as well as Mexico, Canada, Korea, China and the Caribbean.

(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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