NASHVILLE, TN -- Gary Murphey, who was appointed as the trustee of the troubled Fuel Fitness chain by a bankruptcy court judge last August, is accepting bids for a new owner.
Murphey plans to file a motion with the bankruptcy court next week to approve the sale of the assets of the company to the highest bidder.
“The easiest way to put a new owner or investor in control of an operation that is in Chapter 11 is to sell him all the assets and assign him all the contracts and leases,” Murphey says. “Although it is an asset sale, it is not a liquidation. I intend to have the new owner or investor honor all contracts and leases.”
There are five remaining Fuel Fitness clubs—four in Nashville and one in Clarksville, TN.
Fuel Fitness filed for bankruptcy in December 2006. Manny Butera had owned the chain before leaving the company to pursue other business interests.
Once a new owner takes over Fuel Fitness, the money spent to purchase the company will go to secured and unsecured creditors, and for administrative claims and operation costs, Murphey says. Any money left over will go to Butera.