YouFit Health Clubs gets court approval of bid procedures for assets

By Sarah Lizee

Olympia, Wash., Nov. 23 – YouFit Health Clubs, LLC received court approval of the bidding procedures for substantially all of its assets, according to an order filed Monday in the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company has entered into an asset purchase agreement with YF FC Acquisition, LLC, an acquisition vehicle created by the proposed debtor-in-possession lenders, which will act as stalking horse bidder for the assets.

Under the stalking horse agreement, the purchase price will be at least $75 million, plus the assumption of certain liabilities.

The stalking horse agreement does not contain any break-up fees, expense reimbursements or other bid protections.

Bids must state a purchase price that includes cash of at least $75 million, the assumed liabilities and $1 million, which is the initial overbid amount. Subsequent bids would be in increments of $500,000.

Competing bids are due by noon ET on Dec. 15.

An auction, if needed, will be held on Dec. 21.

A sale hearing will take place on Dec. 23.

YouFit is a gym chain with headquarters in Deerfield Beach, Fla. The company filed Chapter 11 bankruptcy on Nov. 9 under case number 20-12841.

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