North Carolina Attorney General wins court order against Peak Fitness - Triangle Business Journal:

martaemimbzini.blogspot.com
The purpose of the bonds is to guarantee customer repayment if Peak Fitness runs into furthe rfinancial troubles. All of the Peak Fitness clubs are organizexd under aholding company. One groupl of four Raleigh clubs, LLC, filed for Chapter 11 bankruptcin April. Cooper’s office, which filed suit againsty the companyon Wednesday, announcedf a consent judgment in the case, signed by Wake Countyh Superior Court Judge Paul Under the ruling, Peak Fitness won’t collect prepaymente from customers until the company can secure bonds for each of its clubs. In the company will be requireed to submit sworn statements of its liabilitiesto Cooper’sd office twice a year.
This week’ss court action isn’t Cooper’s first run-in with the company. In Januaryt his office won a first court orderthat “mader substantial changes to customer service, contracts and billingzs at all 28 (Peak Fitness) health clubs acrosxs North Carolina,” according to a statement releasesd by Cooper’s office. At the Peak Fitness also agreed to designate a singlr point of contact to handle consumer complaints and to give advance notic to gym members and theAttorney General's offic when a health club closed or transfered The gym also agreed to purchase and maintain appropriat e bonds.
Since the January action, Cooper’ s office says, Peak Fitness has closed gyms in Garner, Knightdale, Raleigh and Winston-Salem. Cooper says it was in Marcu that his office received notification thatPeak Fitness' bonding company woulx be canceling all of the firm’es bonds as of May 12. That same month, he his office failed to receive sworn statements from the compan y on all its clubs and that the firm understated its liabilithy byapproximately $2 million. “Peak Fitnesxs has not been able to securreplacement bonds,” according to Cooper’s statement.
“ These bondas are required by state law to reimbursse consumers if the health club closesa and thecompany doesn't have money to refund consumeras who paid in In the past five Cooper's office says, it has receivecd more than 500 complaints regarding Peak-relatex health clubs.