Major Recent Chapter 11 Filings: DavidBartonGym & No Fear Retail Stores

by Randall Reese
Contact

Several significant cases were filed recently across the country. Below, we have provided brief summaries of the case filings as well as links to some of the major pleadings that have been filed in the cases.

Club Ventures Investments LLC (Does Business As DavidBartonGym)

Club Ventures Investments and several affiliated companies, which operate the chain of DavidBartonGym fitness clubs in New York City, Chicago, Miami and Seattle, voluntarily filed for chapter 11 protection on March 2nd in New York. In total, the companies' six clubs have 13,500 members and generated 2010 revenue of $28.3 million. Club Ventures does not own any of the real estate where its clubs or executive offices are located (all are leased), but does have pre-bankruptcy debt of approximately $65 million. Major debt holders include Bank of America, Praesidian Capital Investors, LP, and LNB Holding LLC. Praesidian and LNB are also holders of equity in the debtors. The companies blamed their current troubles on their rapid expansion, which was less successful than they had anticipated. In December 2010, Club Ventures entered into a management agreement with Meridian Sports Club California, LLC, which operates 12 fitness clubs in California and Hawaii. The current cases have been prenegotiated with Praesidian and LNB, both of whom entered into a Plan Support Agreement prior to the chapter 11 filings.

All major court filings can be accessed at: http://www.chapter11cases.com/Club-Ventures-Investments-LLCdba-DavidBartonGym_c_23302.html#axzz1FzfhsJIy

No Fear Retail Stores

No Fear Retail Stores, Inc. and two affiliated companies filed for chapter 11 protection on February 24th in the Southern District of California. The companies, headquartered in Carlsbad, California, were founded in 1990 and develop casual apparel under the "No Fear" brand name. The brand reached its peak popularity in 1995 when sales were approximately $140 million. Sales fell in the years after 1995 and the companies changed strategy, focusing on smaller retailers rather than department stores and "big box" retailers. They also began opening their own retail stores in 1999 and had opened 20 company stores by 2004 (at a cost of $250,000 to $400,000 per location).

No Fear had 55 retail locations (all leased) at the end of its 2010 fiscal year (August 31). However, same store sales in its stores decreased 19.4% in fiscal year 2009 and another 10.2% in the first three quarters of fiscal year 2010. Total fiscal year 2010 revenues from the stores were $37.6 million, which generated a small EBITDA loss. Since September 30, 2010, No Fear has closed 12 of its retail locations and had 41 remaining locations as of the bankruptcy filing.

The companies blamed their focus on the Southwestern United States, unwillingness by landlords to renegotiate leases, and the high cost of failed attempts in 2009 and 2010 to raise additional funding through a reverse merger with Gatorz Inc. for the bankruptcy filing. Court documents state that the companies hope to reorganize around an even smaller number of stores by securing third party financing.

All major court filings can be accessed at: http://www.chapter11cases.com/No-Fear-Retail-Stores-Inc_c_23295.html#axzz1FzfhsJIy

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Randall Reese
Contact
more
less

Restructuring Concepts LLC on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.