A former owner of the Sport & Health fitness center chain has filed for Chapter 7 bankruptcy six years after the gyms were acquired by US Fitness Holdings LLC.
ClubX LLC, formerly known as Sport & Health L.C., filed for Chapter 7 bankruptcy liquidation Nov. 5 in the United States Bankruptcy Court for the Eastern District of Virginia.
So why does an inactive company without any current holdings in the gym chain file for bankruptcy? In an interview with Thomas Fauquier of ClubX and Ori Gorfine of US Fitness, they explained it this way: While the filing has no bearing on the gyms themselves, the Chapter 7 is to ensure ClubX cannot be implicated in any future complaint by the fitness centers’ landlords. Fauquier still holds the ClubX CEO title in addition to his other roles in real estate investment and development.
Fauquier said the decision to file for Chapter 7 was solely the decision of the old ownership group and did not involve US Fitness. He said it was a preemptive move prompted…Read the full story from the Washington Business Journal.