The Globe and Mail reported that weight-loss chain Herbal Magic filed for bankruptcy protection, owing creditors more than $77 million.

The Globe and Mail said the chain has a tentative deal to be acquired by the private equity firm founded by Bay Street financier Steven Hudson, who is chairman of Herbal Magic and an investor in the ailing chain.

According to court filings, The Globe and Mail notes that Hudson intends to shut about 60 of the chain’s 247 stores, let go 188 of 562 employees and continue operating.

The Globe and Mail notes that after selling Newcourt Credit to CIT for more than $2 billion in 1999, Hudson invested in hair repair, through Hair Club for Men, and weight loss, through Herbal Magic, before returning to his roots of asset-backed financing in 2011, setting up Element Financial.

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