CHICAGO -- As Bally Total Fitness continues to work on its 2005 10-K and first quarter 2006 reports, the company does so with a new chief financial officer—the fourth CFO in two years for the financially troubled company.
In mid April, the company hired Ronald G. Eidell as CFO to replace former Chief Financial Officer Carl J. Landeck effective April 13. Landeck, who was hired as Bally CFO in March of last year, is no longer with the company. Bally did not offer a reason for Landeck’s departure. Landeck had replaced William Fanelli, who served as acting CFO from April 2004 to March 2005, after John Dwyer left Bally in 2004 after 8 years with the company.
Bally announced on March 14 that it would not meet the March 16 deadline to file its 2005 10-K report. The company sought and received waivers from its senior bank lenders and bondholders to extend the deadline. In late March, Bally also sought and received a waiver to extend the time for filing of its quarterly reports for the three months ended March 31, 2006 and June 30, 2006. Under the default waivers, Bally's 2005 10-K would be required to be filed no later than July 10, 2006. The waivers also permit a delay in filing the quarterly reports until Sept. 11, 2006.
The company, which has a $743 million debt, restated financials for 2000 through 2003 and released financials for 2004 and the first nine months of 2005 in late November 2005. It is undergoing an investigation by the Securities and Exchange Commission related to the refilings. The company also is seeking a buyer.
Eidell assumes responsibility for all finance and accounting functions. He will initially hold the title of senior vice president - finance. David S. Reynolds, vice president and controller, will assume responsibility for signing the company's SEC filings through the completion of the company's first quarter 2006 10-Q report.
Eidell is a partner at Tatum LLC, an executive services and consulting firm where he is a financial leadership partner in the Chicago office. Eidell brings more than 35 years of senior financial and operating experience to Bally, including helping clients improve the quality and timeliness of financial reporting, pursue strategic alternatives, and improve cash management, reporting and forecasting disciplines.
Eidell serves as a director of NeoPharm, where he is an audit committee member (and where he served as the company's interim president and CEO for most of 2005). Most recently, Eidell has been the chief financial officer at a number of public or pre-IPO companies including Esoterix in Austin, TX; and Novamed Inc. and Metromail Corp. in Chicago. Prior to that, he was senior vice president, finance and treasurer with R. R. Donnelley & Sons Co.