Retro Fitness (Yonkers) in bankruptcy and closed

Retro Fitness YONKERS – Retro Fitness downtown has closed and filed for Chapter 7 bankruptcy while owing $104,000 on a taxpayer-funded loan.

On Wednesday, a man inside Retro Fitness said he could not say when the gym closed. He also said he didn’t know if the gym’s members would be compensated for any time remaining on their memberships.

A sign on the health club’s entrances at 66 Main St. stated that the facility is closed “until further notice” and it apologized for the inconvenience.

Yonkers Fitness LLC filed Chapter 7 bankruptcy papers Nov. 13 in the U.S. Bankruptcy Court in White Plains. Chapter 7 bankruptcy allows for the liquidation of a business’ assets by selling them and distributing the proceeds to creditors.

In its bankruptcy papers, the Yonkers Retro Fitness estimated its debts to range from $100,000 to $500,000 with less than $50,000 in assets. The court has scheduled a creditors meeting on the matter Dec. 12 at 12:30 p.m. at 300 Quarropas St., Room 243A.

Retro Fitness’ corporate offices did not respond to a request for comment about the gym’s closure.

One of the gym’s biggest debts is a default on a taxpayer-funded loan with a principal of $104,000.

The original loan amount of $300,000 was obtained by Retro Fitness Funding Yonkers from the Yonkers office of economic development, and in turn the money was lent to the gym’s owners.

The default led to a lawsuit to recover the debt. According to the lawsuit papers filed Nov. 20, the health club’s owners Holly and Jason Wallman started missing monthly payments of $2,943.81 on Jan. 1.

Retro Fitness Funding Yonkers is a limited liability corporation whose principals include men who are principals in DW Capital, the company that developed 66 Main St., a mixed use retail-residential complex.

Eric Wolf, a partner in DW Capital, said on Wednesday that Retro Fitness’ future is in the court’s hands.

“I suspect that if it were to reopen it’s because the gym asset would be sold to someone who would want to reopen it,” said Wolf, adding that he would consider any use from a grocery store to a gym.

Wolf noted that although the gym operators have defaulted on their loan to Retro Fitness Funding Yonkers, no taxpayer funds have been lost because Retro Fitness Funding Yonkers has made the payments to City Hall as the loan guarantor.