Bally Total Fitness, one of the largest operators of fitness centres in the US, has announced agreements to sell its 16 facilities in Toronto, Canada, in deals estimated to be worth around CAN$19.6m (£8.9m) in total.

Extreme Fitness will acquire six of the clubs, while GoodLife Fitness Centres will acquire the remaining 10. The properties include nine Sports Clubs of Canada and seven Bally Total Fitness clubs.

The sale is part of the company’s strategy to divest non-core assets in order to focus on the core Bally Total Fitness brand and operations in the US. Proceeds from the transactions will be available to support operations.

“These transactions are important steps forward in Bally’s business and financial restructuring initiatives.

The proceeds will enhance Bally’s liquidity in support of the company’s ongoing efforts to negotiate a consensual restructuring with our debt holders,” says Don R Kornstein, Bally’s interim chair.

Bally operates more than 400 facilities in 29 states in the US, plus Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness, Bally Sports Clubs and Sports Clubs of Canada brands.

Meanwhile, Goodlife’s acquisition of the 10 Bally clubs brings its portfolio in Canada to 139 clubs, consolidating its position as the largest operator there.