Members Want Money Back After Bankruptcy Court Closes Redondo Beach Gym
REDONDO BEACH (CBSLA.com) — Members of a gym in Redondo Beach are demanding to get their money back after a bankruptcy court closed the fitness hub’s doors.
“What happened to my money? What happened to all the people’s money?” Fitness Evolution member Jack Levy said. “Last week they had me renew for another year. It cost me…$500 for another year. And now, a week later, they shut down?”
Fitness Evolution, which also has a location in Commerce, is part of Muscle Improvement, Inc., which was assigned a trustee as part of bankruptcy proceedings.
In a motion filed in federal court, the trustee asked the judge to approve Chapter 7 bankruptcy for the gyms, arguing they were substantially behind in rent and lacked liability insurance and the funds to keep running.
The judge agreed.
CBS2’s Cristy Fajardo tracked down Fitness Evolution’s corporate officer Steve Tavera. His parents are listed as the owners of the gyms.
“We did not shut it down. The U.S. Trustees shut it down,” he said. “We are working to try to see what can be done to reopen.”
Asked if members would get their money back, Tavera said, “I have no comment on that right now.”
Court documents show the trustee believes the gyms, which were previously Gold’s Gym franchises, could eventually open again.
Fajardo reports Muscle Improvement, Inc. has a long list of creditors, including the city of Hawthorne. The city lent them $2.5 million to open a gym, but it defaulted and shut down last year.
Tavera had “no comment” about that situation.