Owners of closed Powerhouse Gym will not owe 1,250 creditors

Owners of closed Powerhouse Gym will not owe 1,250 creditors

Owners of a Brighton Township gym that closed without notice to its members have been discharged of their debts in a U.S. Bankruptcy Court ruling.

The discharge, ruled by Judge Daniel Opperman, prohibits creditors from attempting to collect discharged debts from Wally and Jennifer Gumiela of Hartland Township, the former owners of Powerhouse Gym, 5757 Whitmore Lake Road.

“I just don’t understand how this could happen,” said John Forsythe of Brighton Township. “I’m baffled as to why this isn’t considered fraud.”

Forsythe was one of 1,250 creditors listed in the Chapter 7 bankruptcy case, which involved customers, attorneys and government entities.

Forsythe said he purchased a membership for grandson Matthew Forsythe, 16, just six days before the gym closed in January.

Creditors said the gym hired a sales staff to “aggressively” sell memberships up until it closed, and it told customers the gym would reopen as Kensington Valley Fitness at 10489 Grand River Ave. in Brighton Township.

The gym’s equipment was temporarily stored at the location, but Livingston Management Group didn’t receive the proof of “financial fitness” needed to secure a lease, landlord Lorne Darnell previously told the Daily Press & Argus.

Walter Gumiela, during a March bankruptcy hearing in Flint, cited “problems” with the business’ landlord and the market as the couple’s reasons for filing for bankruptcy. He and his wife declined to elaborate on those comments to the Daily Press & Argus.

Court records show former landlord Charms 3 evicted the tenants in January from their former location. The company filed a complaint in Livingston County Circuit Court that alleges the gym owners owe more than $100,000 for six months of rent and fees.

Walter Gumiela responded that he had surrendered assets to a “previous owner,” whom he said had plans to open a new gym but encountered issues with “rezoning” and “special use.” He did not elaborate what type of assets were turned over.

Records show the special land-use petition filed with Brighton Township at 10489 Grand River Ave. was filed only by Walter Gumiela. He requested use of the building for a new gym named Kensington Valley Fitness.

Several customers filed complaints about the former gym with Michigan Attorney General Bill Schuette’s office.

The Gumielas’ attorney, Kevin Smith of Southfield-based Beadle Smith PLC, did not return a phone call Thursday from the Daily Press & Argus.

An attorney previously representing the couple said a complaint must be filed in bankruptcy court if creditors wish to start a fraud case.

Owners of a Brighton Township gym that closed without notice to its members have been discharged of their debts in a U.S. Bankruptcy Court ruling.

The discharge, ruled by Judge Daniel Opperman, prohibits creditors from attempting to collect discharged debts from Wally and Jennifer Gumiela of Hartland Township, the former owners of Powerhouse Gym, 5757 Whitmore Lake Road.

“I just don’t understand how this could happen,” said John Forsythe of Brighton Township. “I’m baffled as to why this isn’t considered fraud.”

Forsythe was one of 1,250 creditors listed in the Chapter 7 bankruptcy case, which involved customers, attorneys and government entities.

Forsythe said he purchased a membership for grandson Matthew Forsythe, 16, just six days before the gym closed in January.

Creditors said the gym hired a sales staff to “aggressively” sell memberships up until it closed, and it told customers the gym would reopen as Kensington Valley Fitness at 10489 Grand River Ave. in Brighton Township.

The gym’s equipment was temporarily stored at the location, but Livingston Management Group didn’t receive the proof of “financial fitness” needed to secure a lease, landlord Lorne Darnell previously told the Daily Press & Argus.

Walter Gumiela, during a March bankruptcy hearing in Flint, cited “problems” with the business’ landlord and the market as the couple’s reasons for filing for bankruptcy. He and his wife declined to elaborate on those comments to the Daily Press & Argus.

Court records show former landlord Charms 3 evicted the tenants in January from their former location. The company filed a complaint in Livingston County Circuit Court that alleges the gym owners owe more than $100,000 for six months of rent and fees.

Walter Gumiela responded that he had surrendered assets to a “previous owner,” whom he said had plans to open a new gym but encountered issues with “rezoning” and “special use.” He did not elaborate what type of assets were turned over.

Records show the special land-use petition filed with Brighton Township at 10489 Grand River Ave. was filed only by Walter Gumiela. He requested use of the building for a new gym named Kensington Valley Fitness.

Several customers filed complaints about the former gym with Michigan Attorney General Bill Schuette’s office.

The Gumielas’ attorney, Kevin Smith of Southfield-based Beadle Smith PLC, did not return a phone call Thursday from the Daily Press & Argus.

An attorney previously representing the couple said a complaint must be filed in bankruptcy court if creditors wish to start a fraud case.