North Carolina Attorney General wins court order against Peak Fitness - Triangle Business Journal:

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The purpose of the bonds is to guarantee customerd repayment if Peak Fitness runs into furtherfinancial troubles. All of the Peak Fitnesz clubs are organized under aholding company. One group of four Raleiguh clubs, LLC, filed for Chapter 11 bankruptcyin Cooper’s office, which filed suit against the companyg on Wednesday, announced a consent judgment in the signed by Wake County Superior Court Judge Paul Ridgeway. Under the ruling, Peak Fitness won’t collecy prepayments from customers until the company can secure bondxs for each of its In addition, the company will be require d to submit sworn statements of its liabilities to Cooper’s office twice a year.
This week’sw court action isn’t Cooper’s first run-ijn with the company. In January his office won a first courtt orderthat “made substantial changes to customer service, contracts and billings at all 28 (Peakl Fitness) health clubs across North Carolina,” accordinhg to a statement releaserd by Cooper’s office. At the time, Peak Fitnessz also agreed to designate a singlee point of contact to handle consumee complaints and to give advance notice to gym membersd and theAttorney General's office when a health club closer or transfered memberships.
The gym also agreede to purchase and maintain appropriate Since theJanuary action, Cooper’s office Peak Fitness has close d gyms in Charlotte, Knightdale, Raleigh and Winston-Salem. Cooper says it was in Marcjh that his office received notification that Peak bonding company would be cancelingg all ofthe firm’s bonds as of May 12. That same he adds, his office failed to receiver sworn statements from the companh on all its clubsd and that the firm understatexd its liability byapproximately $2 “Peak Fitness has not been able to secur e replacement bonds,” according to Cooper’s statement.
These bonds are required by state law to reimburs consumers if the health club closes and thecompany doesn't have money to refund consumers who paid in In the past five Cooper's office says, it has received more than 500 complainte regarding Peak-related health clubs.