California Club Facing $75 Million Lawsuit Rebrands after Gold’s Gym Ends Association

California Club Facing $75 Million Lawsuit Rebrands after Gold’s Gym Ends Association.

Gold’s Gym International, Dallas, has ended its association with the owner of a Gold’s Gym franchise in Oxnard, CA, after a $75 million civil case was filed by the Ventura County (CA) District Attorney’s Office. The owner has since filed for Chapter 11 bankruptcy, and the club is rebranding as a Powerhouse Gym under new ownership.

The case, filed in October by the district attorney’s office, claimed the Gold’s Gym was issuing illegal contracts. In November, a judge granted a restraining order against owner Noel Thompson and his Body Shaping Gyms Inc. company, which had done business as Gold’s Gym.

Among several allegations, the district attorney’s office says the 12-month membership contracts issued by the former Gold’s Gym included a 13th month and that the contracts made it difficult for members, including military veterans, to cancel. The district attorney’s office has been conducting a lengthy investigation into the former Gold’s Gym, as has the Ventura County Star newspaper.

A hearing was held this morning in a Ventura, CA, courtroom. Karen Wold, the senior deputy district attorney assigned to the case, told Club Industry that during the hearing, Thompson announced he had filed for bankruptcy this week. Another hearing is set for Dec. 30, Wold told Club Industry.

“We have taken the position that government or regulatory actions are not subject to stay in the bankruptcy court,” Wold said.

In a statement to Club Industry, Gold’s Gym said that its announcement about ending its association with the Gold’s Gym in Oxnard does not affect or impact any other Gold’s Gyms in the Tri-Counties or Los Angeles area in California.

“We are aware of the civil case filed against Body Shaping Gyms Inc., which independently owned and operated a Gold’s Gym franchise location in Oxnard, CA,” Gold’s Gym said in its statement. “After further evaluation and for other reasons, we have ended our association with Body Shaping Gyms Inc. Gold’s Gym maintains the highest level of standards regarding both the experience and satisfaction of members. It became evident that Body Shaping Gyms Inc. was not meeting those standards.”

Thompson told Club Industry today that the rebranding of the 60,000-square-foot gym to Powerhouse Gym will take place within the next 30 days. The gym will remain open during the transition and reorganization under Chapter 11, and Thompson said he will remain involved in the club’s operation.

“Over the years, we had complaints here and there, as most health clubs do, in trying to deal with situations,” Thompson said in an interview earlier this week. “We have over 8,500 members, and obviously, in billing 5,500 a month, we had circumstances and situations like any other club. But upon review, [the district attorney’s office] had an angle as far as addressing the agreements. Once it was brought to our attention, if there was an issue, we immediately worked with the county to try to get it rectified and turned over everything we needed to.”

Thompson says he has owned a health club in Oxnard for 20 years, the first 10 as an independent operator and the last 10 as Gold’s Gym.

“Thousands of people that we’ve serviced over the years are very happy with the club,” Thompson says. “I can’t express the amount of support I’ve gotten from people in the community and people in the gym in regards to the way this has been handled in the media. Twenty years of business has to say something.”

Thompson said in a press release today that members may keep their memberships as Powerhouse Gym at no additional fees or they may transfer their Gold’s memberships to another Gold’s Gym, also at no additional cost. planet fitness lunk alarm,   lunk alarm planet fitness,   la fitness logo  , health club news ,  terry fasy , lunk alarm ,  anytime fitness india ,  north castle partners curves  ,lunk alarm at planet fitness ,north castle partners and curves , cybex international lawsuit  , planet fitness rules  ,giscombe gym jamaica  ,planet fitness lunk  , healthclubnews.org ,bally fitness  ,giscombe gym  ,www.healthclubnews.com  ,what is planet fitness lunk alarm ,health club  ,planet fitness  ,equinox rockefeller center  ,north castle partners and curves international  ,pure fitness for women ,lifetime fitness tulsa ,surf the channel  ,xercise4less  ,la fitness  ,anytime fitness in india  ,premier fitness financial problems  ,what is the lunk alarm at planet fitness ,world gym summerville ,world gym tanning 600 winters ave paramus nj ,1056 manor av box ,ridge runners club haverhill,ma ,anytime fitness india,north castle partners and curves international ,synergy fitness home office  ,northgate health club rochester mn, planet fitness alarm lunk ,synergy fitness owner ,synergy fitness corporate office  ,gold\’s gym  ,health club industry news  ,planet fitness promotions 2012  ,what is the planet fitness lunk alarm  ,blast fitness buys ballys  ,planet fitness alarm  ,naked chic  ,synergy murder  ,what is a lunk alarm at planet fitness  ,anytime fitness  ,anytime india fitness private limited  ,planet fitness lunk rules  ,curves north castle partners  ,planet fitness gym rules  ,planet fitness 24/7 ,tough mudder wallpaper , www.healthclubnews.com ,planet fitness lunk alarm ,wilmington, nc fitness instructor with preexisting condition ,melissa hoskins longview ts ,stamford la fitness employee arrested  ,
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