CHICAGO—To raise net proceeds, Bally recently generated $10 million from the sale and leaseback of four of its clubs. The transaction, which closed on Oct. 20, provided an additional liquidity cushion for the fitness chain, according to a statement from the company.

Bally is also reducing the size of its board of directors from nine to five members. The company will not nominate Steven Rogers for reelection when his term expires, and interim chairman Don Kornstein, a Class III director, will be nominated for a three-year term as a Class I director at Bally’s 2007 annual shareholder meeting.