By INDERIA SAUNDERS,Guardian Business Reporter,Inderia@nasguard.com

The head of Bally Total Fitness in The Bahamas is insisting a move by its parent company to file for bankruptcy protection in the States will have no effect on his operation — the first international location for the U.S. fitness giant.

"Until we find out in months to come what they are going to do in the future, I don't believe the Bally name is going to disappear," President Peter Whitehead told Guardian Business yesterday. "We are totally independent, there is not even a hiccup in our operation."

In fact, Whitehead says the company is about to bring in new equipment for the gym, a sign, he argues, the franchise is not expecting to see declines in its 1,000-plus members.

That's not the case in the U.S.

There Bally fitness centers are noting significant falloff in membership numbers due to the weak economy. The forecast isn't much better, with Bally swimming in $800m worth of debt. That situation ultimately compelled the company to apply for protection from creditors by filing Chapter 11 this week, the second time it has taken that step in as many years. It is hoping to emerge from that bankruptcy next year at the same time planning to continue operations at its existing locations during and after restructuring efforts.

Now approaching the season when membership usually soars, Whitehead, here in The Bahamas, isn't offering projections for what if any increase in membership his club is expecting after New Year's Day and the the resolution thousands of Bahamians will make to lose weight. Still, local analysts suggest many businesses should be more focused on maintaining their existing client bases rather than on growing them in this difficult economy.

Bally's bankruptcy and the possibility that name will be retired if the company fails to effect its restructuring could impact Whitehead's future success. Still, he remains hopeful.

"We have to be optimistic and positive in these days of incredible turmoil in the United States," he told Guardian Business Wednesday. "I don't believe the Bally name will continue in the same form."

His reassurances come the same day the largest commercial fitness chain in the U.S. filed its petition in bankruptcy court. The move is expected to significantly reduce debt from its balance sheet while streamlining and strengthening its core operations. Executives have not entirely ruled out the possibility of a forced sale.

Already, there is talk buyers are lining up.

A change at the top of the franchiser totem pole would likely force the local operation to rebrand itself, with the choice of going it alone or seeking a new, high-profile banner under which to operate. The Bally's name has, ostensibly, helped it to exploit the U.S. tourist market here, with visitors willing to use its facilities because of the attached name recognition.

"Bally is a fantastic name worldwide [and] we are there first international franchise," Whitehead said. "I believe we will continue as if nothing has happened, giving great service to our customers."