YouFit, Lacking Cash for Plan Approval, Gets Bankruptcy Tossed

YouFit Health Clubs LLC, lacking the cash to get a creditor repayment plan approved, will wrap up its affairs outside of bankruptcy after a judge granted the gym chain’s bid to dismiss its Chapter 11 case.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware granted YouFit’s largely consensual request at a hearing Wednesday.

A lender group that includes Birch Grove Capital LP and Goldman Sachs Bank USA purchased YouFit’s business out of bankruptcy by forgiving $85 million in debt. But the deal left the estate without sufficient funds to cover the expenses required to ...