Bankruptcy court OKs sale of Gold’s Gym

HEALTH CLUB NEWS STORY

HEALTH CLUB NEWS STORY

Bankruptcy court OKs sale of Gold’s Gym and will remain in operation under new owners after a federal bankruptcy judge approved the sale of the east side fitness center for nearly $1.8 million, according to court documents.

An announcement of the sale earlier this week indicated that current president and CEO Maureen Suhadolnik would remain with the gym. Suhadolnik opened the local franchise at 1600 Clear Lake Ave. in 2005.

The fitness center has remained open during bankruptcy proceedings.

Chief Bankruptcy Judge Mary Gorman approved sale of the facility to Pennsylvania-based Nas’Anno Corp. for $1.78 million at a court hearing Tuesday in Springfield. Court documents indicate that the sale includes the building, equipment, membership lists, and all “personal and intellectual property.”

Memberships are not affected by the sale, and all current employees will remain, according to the Gold’s Gym announcement. The gym has approximately 45 employees. New owners also plan to announce upgrades in the next few weeks, Suhadolnik said in a prepared statement.

“All involved parties are excited about the agreement, upcoming modifications and what it will mean to the local fitness market,” Suhadolnik said.

The gym filed for Chapter 11 reorganization in March 2014 as a result of what Suhadolnik described at the time as a series of financial setbacks, including the failure of another Suhadolnik company, Crazy Horse Concrete of Springfield.

Springfield attorney R. Stephen Scott said creditors signed off on the sale, adding that Nas’Anno has invested in other fitness centers. The company is based in Stroudsburg, Pennsylvania, according to corporate records in that state.

“It’s what we wanted when we started Chapter 11,” Scott said. “It will be a successful Chapter 11 sale.”

Gold’s Gym has more than 650 locations in 43 states and 30 countries, according to the company, which this month announced agreements to open eight gyms in Morocco, four in Mongolia and four in Jordan.

HEALTH CLUB JOHN ROGERS