ARTICLE
10 March 2021

In-Shape Holdings, LLC Files For Bankruptcy Protection In Delaware

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Pierson Ferdinand LLP

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On December 16, 2020, In-Shape Holdings, LLC and two affiliated debtors (together, the "Debtors" or "In-Shape")
United States Delaware Insolvency/Bankruptcy/Re-Structuring

On December 16, 2020, In-Shape Holdings, LLC and two affiliated debtors (together, the "Debtors" or "In-Shape") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. In-Shape Holdings, LLC is a health club operator in Stockton, CA.

The company reports $50 to $100 million in assets and more than $100 million in liabilities, including a first-lien revolving credit agreement of up to $17 million and $53 million in term loans.

In-Shape entered into an asset purchase agreement to sell substantially all of the Debtors' assets with an existing lender and co-investors as the stalking horse, for a purchase price of a $45.3 million credit bid. The stalking horse would assume leases for up to 45 clubs. In-Shape also entered into a deal to receive up to $30.3M in DIP financing, and asked the court to approve using those funds.

In-Shape had operated 65 clubs prior to the covid-19 pandemic, but has since terminated leases at 21 locations and plans to reject leases for another four clubs. Top Five Tips for Commercial Landlords Dealing with a Tenant in Bankruptcy is an important read for commercial landlords dealing with a debtor in bankruptcy.

FisherBroyles does not represent the Debtors in this case. If you have received a notice and have any questions, you should contact Debtors' counsel. This blog post is for informational purposes only.

In-Shape's bankruptcy case was assigned case no. 20-13130 and is being jointly administered before the Honorable Laurie Selber Silverstein in the United States Bankruptcy Court for the District of Delaware.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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