CHARLOTTE, N.C., July 10 /PRNewswire/ -- Fitness Management Group, Inc. (the "Company"), parent company of Peak Fitness Centers ("Peak Fitness"), today announced that the Company has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the Western District of North Carolina (the "Bankruptcy Court"). As part of this restructuring, Fuzion Investment Capital LLC, a Nevada Limited Liability Company (the "Acquirer" or "Fuzion"), will acquire Peak Fitness assets under a section 363 sale of the U.S. Bankruptcy Code. Under new ownership, Peak Fitness Centers will continue on a far stronger and more competitive footing.
As part of the filing, the Company has agreed to a definitive Asset Purchase Agreement, pending Bankruptcy Court approval, with the Acquirer to sell substantially all of the Company's assets. The Company believes the sale will provide for smooth, ongoing operations of the business and the best outcome for members, employees, and vendors.
Fitness Management Group's filing was largely the result of real property leases that were negotiated at the height of the real estate market, the significant and sustained economic downturn, and the acquisition of select underperforming assets from the Capital Health Club chain in Raleigh, NC. The filing will allow Peak Fitness's new owners to re-negotiate certain existing agreements and re-position the business for long term growth and success.
"Peak Fitness has made some difficult decisions towards reorganization over the past couple of months, including closing the majority of our underperforming facilities in the Raleigh, NC market," said Jeffrey R. Stec, CEO of Fitness Management Group. "Liabilities inherited from previous management and the current severe economic downturn, have had an adverse impact on our financial performance. Restructuring with Fuzion will allow the business to establish a re-energized platform for growth and a strong commitment to the best customer service in the industry. We look forward to working closely with Fuzion to help provide our members with a quality experience at an affordable price," said Jeffrey R. Stec, Founder and CEO of Fitness Management Group.
Members or Vendors with questions are encouraged to visit our website:http://www.peakfitnessclubs.com/reorganizing Member Hotline: (704)815-0753. Vendor Hotline: (704)815-0754.
About Fitness Management Group, Inc.
Fitness Management Group, Inc. is the holding company for Peak Fitness centers. Peak Fitness is a leading regional provider of fitness centers in North and South Carolina. The company currently has 17 locations and is the largest independently operated fitness club chain in the Carolinas.
|SOURCE Fitness Management Group, Inc.|
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