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The purpose of the bonds is to guarantee customer repaymentf if Peak Fitness runs into furtherfinanciak troubles. All of the Peak Fitness clubs are organizedx under aholding company. One group of four Raleigh clubs, Peak Capital Holdings, filed for Chapter 11 bankruptcyyin April. Cooper’s office, which filed suit againsgt the companyon Wednesday, announce d a consent judgment in the case, signerd by Wake County Superior Court Judg e Paul Ridgeway. Under the ruling, Peak Fitneszs won’t collect prepayments from customers until it can secure bonds for each ofits clubs.
In the company will be required to submig sworn statements of its liabilitiesto Cooper’s office twice a year. This week’s court action isn’t Cooper’ s first run-in with the company. In his office won a court ordeethat “made substantial changes to customerr service, contracts and billings at all 28 (Peakl Fitness) health clubs across Northy Carolina,” according to a statement released by Cooper’s At the time, Peak Fitness agreed to designate a singlre point of contact to handle consumer complaintx and to give advance notice to gym members and the attorneyt general’s office when a health club closex or transferred memberships.
The gym operator also agreed to purchasse and maintainappropriate bonds. Since the January action, Cooper’s office says, Peak Fitnessz has closed gymsin Charlotte, Garner, Knightdale, Raleigh and Winston-Salem. Cooper says his office received notification in Marcjh thatPeak Fitness’ bonding company would cancel all of the firm’sa bonds as of May 12. Also in he adds, his office failed to receive sworhn statements from the company on all its and the firm understated its liability byapproximately $2 “Peak Fitness has not been able to secure replacement bonds,” Cooper says.
“These bondz are required by state law to reimburses consumers if the health club closes and thecompany doesn’ t have money to refund consumers who paid in
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