YouFit Estate Gives Up on Bankruptcy Plan, Moves to Dismiss Case

YouFit Health Clubs LLC asked a judge to dismiss its bankruptcy case, saying it lacks the funds needed to get a creditor repayment plan approved after selling the business to a group of secured lenders.

The gym chain’s former estate would provide more benefit to creditors by ending the bankruptcy instead of remaining in Chapter 11 proceedings, the company told the U.S. Bankruptcy Court for the District of Delaware in a filing Thursday.

With no business left to reorganize and inadequate cash to fund a Chapter 11 wind down plan, its in the best interest of YouFit’s stakeholders to avoid ...