* Says under formal probe into deferral of payroll costs
* Says was under informal investigation since May 2008
* Shares down 11 pct
Sept 17 (Reuters) - Town Sports International Holdings Inc , which owns and operates the New York Sports clubs, said the U.S. Securities and Exchange Commission was formally investigating the company's deferral of certain payroll costs related to membership sales.
Shares of the company were down 11 percent at $2.50 in trading after the bell.
In a regulatory filing, the operator of healthclubs in metropolitan areas said it had been under informal investigation since May last year.
The SEC issued the formal investigation order on Sept. 14, the gym operator said.
(Reporting by Mihir Dalal in Bangalore; Editing by Vinu Pilakkott) Keywords: TOWNSPORTS/ (mihir.dalal@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mihir.dalal.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says was under informal investigation since May 2008
* Shares down 11 pct
Sept 17 (Reuters) - Town Sports International Holdings Inc , which owns and operates the New York Sports clubs, said the U.S. Securities and Exchange Commission was formally investigating the company's deferral of certain payroll costs related to membership sales.
Shares of the company were down 11 percent at $2.50 in trading after the bell.
In a regulatory filing, the operator of healthclubs in metropolitan areas said it had been under informal investigation since May last year.
The SEC issued the formal investigation order on Sept. 14, the gym operator said.
(Reporting by Mihir Dalal in Bangalore; Editing by Vinu Pilakkott) Keywords: TOWNSPORTS/ (mihir.dalal@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: mihir.dalal.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
