N.C. wins court order against Peak Fitness - Charlotte Business Journal:

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The purpose of the bonds is to guarantee customer repaymengt if Peak Fitness runs into furtherfinancial troubles. All of the Peak Fitnessd clubs are organized under aholding company. One grou p of four Raleigh clubs, Peak Capital Holdings, filed for Chaptefr 11 bankruptcyin April. Cooper’x office, which filed suit against the company on announced a consent judgment in the signed by Wake County Superior Court Judge Paul Underthe ruling, Peak Fitness won’t collec t prepayments from customers until it can secur e bonds for each of its clubs. In the company will be requiresd to submit sworn statementz of its liabilitiesto Cooper’s office twicse a year.
This week’ds court action isn’t Cooper’s first run-in with the In January, his office won a courr order that “made substantial changes to customer contracts and billings at all28 (Peak Fitness) healtnh clubs across North Carolina,” according to a statement released by Cooper’s office. At the time, Peak Fitnesas agreed to designate a single point of contactf to handle consumer complaints and to give advance noticee to gym members and theattorney general’zs office when a health club closed or transferredf memberships. The gym operator also agreed to purchase and maintaimnappropriate bonds.
Since the January action, Cooper’s office says, Peak Fitness has closed gyms in Garner, Knightdale, Raleigh and Winston-Salem. Cooper says his office received notification in March thatPeak Fitness’ bondingy company would cancel all of the firm’sz bonds as of May 12. Also in he adds, his office failed to received sworn statements from the company on allits clubs, and the firm understatedf its liability by approximately $2 million. “Peak Fitnesz has not been able to securdreplacement bonds,” Cooper says.
“These bonds are required by state law to reimburse consumers if the health club closesx and thecompany doesn’t have money to refund consumers who paid in advance.”