Health Clubs and Retail and Real Estate & Retail

L.A. Fitness buying Bally clubs, including Indy location

November 21, 2011

California-based L.A. Fitness, one of the heavyweights in the local health club business, is buying 171 Bally Total Fitness locations, including its only area location, at 5435 W. Pike Plaza Road in Indianapolis.

The deal is the latest shakeup in the U.S. health club industry, which is consolidating after a spurt of overbuilding. The changes are rocking the Indianapolis health club market.

On Nov. 15, Florida-based Lifestyle Family Fitness said it was selling two Indianapolis clubs to Minnesota-based Life Time Fitness and was shutting two others. Days earlier, Cardinal Fitness abruptly closed six of its 12 area locations.

A letter posted by Cardinal Fitness said "operating expenses, marketing costs, and an incredible amount of new competition has increased to the point that competing is no longer possible" at the locations it closed.

L.A. Fitness is buying all but 100 of Chicago-based Bally's clubs. The  deal is expected to close by the end of the month. L.A. Fitness already operates eight health clubs in the area.
 

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