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Peak Fitness closes another location

Posted June 14, 2009
Updated June 15, 2009

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— A troubled health-club chain with locations in the Triangle has closed its doors in downtown Raleigh.

A note on the door over the weekend directed members of the Peak Fitness, at 509 W. North St., to another of its clubs in North Raleigh.

The closure is the latest in a series over the past several months. Other clubs in Raleigh, as well as Garner, Knightdale and Winston-Salem have closed abruptly.

The company is also closing down its club on Falls of Neuse Road in Raleigh and the McGregor Village location in Cary, according to a news release Monday from Lifestyle Family Fitness, out of St. Petersburg, Fla.

Lifestyle announced it would be transferring memberships from the three Peak locations to its area clubs.

Peak members also reported Monday seeing a notice on the door at a Fuquay-Varina club, which states that the property owner has terminated the lease for "failing to make the rental payments when due."

An employee confirmed the notice Monday morning but said that the gym was open and operating as usual.

The Charlotte-based company has seen its share of legal and financial problems over the past several months.

In January, a Superior Court judge ordered the chain to change its operating practices in response to hundreds of complaints over the past five years.

Among the changes, it agreed to designate a single point of contact to handle consumer complaints, clearly post contact information for its billing company and give advance notice to gym members when a health club closes or transfers memberships.

It also agreed to maintain appropriate bonds for each health club to be used to pay refunds to members if a club closes.

In April, Peak Holdings, a subsidiary of Peak Fitness, filed for Chapter 11 bankruptcy, citing $50,000 in assets and between $500,000 and $1 million in debt to nearly 200 creditors.

When the chain's bondholder canceled its bonds in May, Attorney General Roy Cooper filed a second lawsuit against the company. Peak Fitness then agreed to stop selling prepaid memberships and collecting other advance payments until it could secure replacement bonds.

“We’ve been concerned about whether this company can make good on its obligations, which is why we have had to take action,” Cooper said in a statement Monday. “We are following the latest developments closely and consumers are encouraged to contact us for help.”

Cooper also urged club members to continue reporting problems to the state Consumer Protection Division at www.ncdoj.gov or toll-free at 1-877-5-NOSCAM.

30 Comments

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  • jhall4607 Jun 16, 2009

    It's going to do the same thing that happened with us when Knightdale closed. We pre-paid for 2 years! We lost it all. Planet Fitness was supposed to take over our contracts, however, Peak Fitness never paid them, so obviously they stopped letting us go there. This is the worst business ever!

  • robrcb Jun 15, 2009

    "Don't get involved with the training company Professional Fitness either...there is nothing professional about them."

    Exactly, there is nothing professional about them. I'm having a headache trying to get out of that contract now that Peak Fitness has gone under.

  • trouble0415 Jun 15, 2009

    I just called Lifestyle and they said that they are still waiting to hear what is going on, but that Peak members can go to Lifestyle locations and will be issued temporary memberships. I am a Peak member, but went to Lifestyle just last week with a friend to check it out. The one on Capital in the shopping center with BJ's is VERY clean, VERY nice looking. Was actually thinking of canceling Peak to go there before I saw all this- so i'm hoping this works out for the best for me! And everyone else!

  • DIGBY67 Jun 15, 2009

    Lifestyle Family Fitness is NOT Peak Fitness. They're a different company. My research shows they've agreed to service the Peak refugees until July 31. I was a Beyond Fitness refugee who wound up at Capital Fitness/Peak Fitness' North Ridge facility. I didn't like it, so I left for Lifestyle...where I'm very pleased.

  • tiblet Jun 15, 2009

    Lifetime Fitness in Cary is the way to go...wish they would open a few more locations. It's in a class by itself!

  • Professor Jun 15, 2009

    No news here. We need some good news.

  • beasley27607 Jun 15, 2009

    I just called and they are open as of 3:00pm and said they would remain open until they are physically shut down. Maybe it won't be as crowded tonight ha!I might even get a front row parking spot. I recommend calling them yourself and asking or going there in person rather than reading the news reports. Believe some of what you see and none of what you hear!

  • Garnerwolf1 Jun 15, 2009

    Mus: what did you finally do to get it cancelled?

  • Garnerwolf1 Jun 15, 2009

    msu: what did you have to do to cancel?

  • ezLikeSundayMorning Jun 15, 2009

    Capital Fitness was great at first. Then it started going downhill. Suddenly towel service was extra and I started seeing crazy deals posted. $99 for 18 months if you only workout Tuesdays and Thursdays between 1 and 4. I exagerate, but only a little. ;)

    Planet Fitness treated us Knightdale Peak refugees pretty well.

    And yes, they could have given notice, they knew they weren't paying their rent and were probably warned that the cops would move them out if they didn't pay by a certain date.

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