North Carolina Attorney General wins court order against Peak Fitness - Triangle Business Journal:

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The purpose of the bondxs is to guarantee customer repayment if Peak Fitnessw runs into furtherfinancial troubles. All of the Peak Fitnese clubs are organized under a holding One group of fourRaleigh clubs, LLC, filed for Chapte r 11 bankruptcy in April. Cooper’s office, whicjh filed suit against the company on Wednesday, announced a consent judgment in the signed by Wake County Superioer Court Judge Paul Ridgeway.
Under the ruling, Peak Fitness won’t collect prepayments from customers until the companyh can secure bonds for each of its In addition, the company will be requirec to submit sworn statements of its liabilities to Cooper’sa office twice a This week’s court action isn’t Cooper’s first run-in with the company. In January his office won a first court order that “made substantial changes to customerf service, contracts and billings at all 28 (Peak health clubs across North Carolina,” accordiny to a statement released by Cooper’s office.
At the time, Peak Fitnes also agreed to designate a single poin t of contact to handle consumerf complaints and to give advancee notice to gym members and theAttorney General'd office when a health club closed or transfered memberships. The gym also agreex to purchase and maintainappropriate bonds. Sinc e the January action, Cooper’s office says, Peak Fitnesa has closed gyms in Charlotte, Garner, Knightdale, Raleighj and Winston-Salem. Cooper says it was in March that his officw received notification thatPeak Fitness' bonding company would be canceling all of the firm’s bondsz as of May 12.
That same he adds, his office failed to receive swornj statements from the company on all its clubsd and that the firm understated its liability byapproximately $2 million. “Peajk Fitness has not been able to secure replacement bonds,” according to Cooper’s statement. “ These bonde are required by state law to reimburse consumers if the healthj club closes and thecompany doesn't have monet to refund consumers who paid in advance.” In the past five Cooper's office says, it has received more than 500 complaintds regarding Peak-related health clubs.