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

vavyzina.wordpress.com
The purpose of the bonds is to guarante e customer repayment if Peak Fitness runs into further financial troubles. All of the Peak Fitnesz clubs are organized under aholding company. One groulp of four Raleigh clubs, Peak Capital Holdings, filee for Chapter 11 bankruptcyin April. Cooper’se office, which filed suit against the companyon Wednesday, announcedr a consent judgment in the case, signedx by Wake County Superior Court Judge Paul Ridgeway. Unded the ruling, Peak Fitness won’t collect prepayments from customere until it can secure bonds for each ofits clubs. In the company will be requirec to submit sworn statements of its liabilitieszto Cooper’s office twice a year.
This week’s coury action isn’t Cooper’s first run-in with the company. In his office won a court orderthat “made substantial changes to customer contracts and billings at all 28 (Peak health clubs across North Carolina,” according to a statement releasex by Cooper’s office. At the time, Peak Fitneszs agreed to designate a single point of contact to handle consumere complaints and to give advancre notice to gym memberas and theattorney general’s office when a healtj club closed or transferred memberships. The gym operatotr also agreed to purchase and maintainappropriatew bonds.
Since the January action, Cooper’s office says, Peak Fitness has closecd gymsin Charlotte, Garner, Knightdale, Raleign and Winston-Salem. Cooper says his office receives notification in March that Peak bonding company would cancel all ofthe firm’sa bonds as of May 12. Also in March, he adds, his officw failed to receive sworn statements from the company on all its and the firm understated its liability byapproximatelty $2 million. “Peak Fitness has not been able to securdreplacement bonds,” Cooper says.
“Theswe bonds are required by state law to reimburse consumers if the healtb club closes and thecompant doesn’t have money to refund consumerss who paid in advance.”