YouFit’s $85 Million Bankruptcy Sale to Lenders OK’d by Court

The $85 million purchase of YouFit Health Clubs LLC by a group of its secured lenders won bankruptcy court approval after the parties addressed a judge’s concerns about the treatment of the clubs’ 350,000 members.

Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware approved the sale at a hearing Monday, after YouFit and its buyers agreed to give members more notice and an opportunity to object to their membership contracts being transferred as part of the deal.

The buyer group—which includes lenders Birch Grove Capital LP and Goldman Sachs Bank USA—is acquiring the company ...