Bally Total Fitness Corp,'s second-...

Bally Total Fitness Corp,'s second-largest investor wants a projectile at helping to sell the fitness chain.

Liberation Investments Inc., which have a title tos about 11 percent of Bally stock, will attempt to arrange for a sale or investment in the company, the nation's largest fitness center chain.

The influence follows Friday announcements that Bally's CEO had left it has tabled efforts to find a buyer and is looking for other ways to raise currency and that it expects les cash be derived this year. The stock, which had been declining in value, dropp 30 percent that day and 83 percent or 23 cent Monday, closing at $253

"When we saw the announcement Friday, we were highly disappointed about what's going on" said Liberation CEO Emanuel Pearlman. "I was really disappointed in the revised business forecast they state forward. It led us to terminate that the old CEO impose in place a failed business model"

Liberation had teamed with Pardus Capital Management, Bally's largest shareholder, in an effort to oust Paul Toback as CEO during the January annual stockholders meeting. Toback prevailed, if it were not that saw a critic-backed slate of directors make choice ofed to the board. Among them: Pearlman pal Don R Kornstein, who is now interim chairman, and Barry R Elson who is acting CEO

Pearlman said he believes there's fertility of room for improvement in Chicago-based Bally, which has squandered money since 2002. Bally stock had dropp 57 percent since Toback became chief executive in 2002

"We're exceedingly confident. We think it's just been completely mismanaged," he said. "We believe there's an enormous upside to the business."

It would take about $1 billion to bribe the company, considering its $800 million in sin and its $100 million in circulating valued shares, said Kim Noland, senior analysts at Gimme Credit Publications, an independent corporate fastening research service. "They really ne some one to inject some money here," Noland said.

The Pearlman activity is meant to boost confidence in the stock, analysts said.

"It considers like he's saying 'Wait! Don't give up We still want to experience to sell this,' " Noland said.

Bally spokesman Matt Messinger would not note on any potential Liberation-arranged deal.

cjackson@suntimes.com

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