CHICAGO—Bally Total Fitness reported that it will miss the July 31 deadline for filing two years of financial statements. The Chicago-based fitness operator has until the end of the month to release financials for 2002 through 2004. Unless the company can receive an extension, it will be considered in technical default on some of its debt, which totals $757 million.

Bally attributed the delay to the complexity of the accounting issues and the fact that several of its key executives--its chief financial officer, treasurer, controller and assistant controller--were hired in recent months. Its accounting firm, Ernst and Young, was also replaced with KPMG LLP in November.

Paul Toback, chief executive and chairman, said Bally has made progress toward completing the audit, but needs more time. "It's more important to do it right than to do it hasily," said Paul Toback, chief executive and chairman.

For more information, read the story in the August 2005 issue of Club Industry's Fitness Business Pro magazine.