Charlotte, Nc — When Fitness Management Group Inc., parent company of Charlotte, NC-based Peak Fitness, filed for bankruptcy last month, the future of the company was left in question.
Pending a bankruptcy court's approval, troubled club operator Peak Fitness will be sold to Nevada-based Fuzion Investment Capital LLC. At least one competitor wonders how Fuzion's involvement will impact the company.
“Peak has apparently hand-selected a successor, allowing them to escape most of the liability incurred by their poor business practices and operations,” says Kevin Hedley, COO of O2 Fitness, which has five North Carolina clubs in Raleigh, Durham and Chapel Hill. “The new owner and company has not been visible as of yet, which makes me wonder if we will continue to see much of the same with the new company and what [Peak's] existing or prior relationship is or was with the new ownership group.”
Peak Fitness listed debt between $10 million and $50 million, assets of only $100,000 to $500,000 and more than 100,000 creditors, according to court documents.
Fitness Management Group says the bankruptcy filing came as a result of property leases that were negotiated at the height of the real-estate market, the continued economic downturn and the acquisition of select underperforming assets from the Capital Health Club chain in Raleigh. That group, which operated as Peak Capital Holdings LLC, filed for Chapter 11 bankruptcy in April.
Jeff Stec, CEO of Fitness Management Group, says restructuring with Fuzion will allow the business to establish a platform for growth and a commitment to improved customer service.
“We look forward to working closely with Fuzion to help provide our members with a quality experience at an affordable price,” Stec says.