Retrofit Update

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The owner of Cedar Plaza, John Stipek, held a meeting with former Retrofit members earlier this week about the business closing. An MLTnews reader, Autumn, attended the meeting and gives us this update:

The main point was for the landlord, John Stipek, to reassure the members of what he had done to help the business owners. He also made it clear he hopes to have another gym in that shopping center. He said there will be additional meetings…

Although he didn’t directly speak on the issue, many members discussed the money they have now lost. Many members, as recently as two weeks ago, had prepaid for memberships and services. One woman informed people that they can, and should, file a claim with the bankruptcy court.

If you were a Retrofit and would like to file a claim in bankruptcy court the U.S. Bankruptcy Case Number is 09-22895-TT.

We have also learned that originally Retrofit was filing a chapter 11 bankruptcy, where Retrofit would continue to function, maintain ownership of all assets, and try to work out a reorganization plan to pay off creditors. It has since been changed to a chapter 7 bankruptcy, also known as a liquidation bankruptcy, which means all non-exempt assets held by the debtor are sold so that the debts can be repaid to the fullest extent possible. By the language on Retrofit’s web site, it seems as if most of Retrofit’s debt was owed to the property owner, John Stipek. If that is true, we may have a case like Sorelli Pizza last fall where a new company could basically come and take over a turn-key gym, without having to acquire all new equipment.

6 COMMENTS

  1. I really don't see another club coming in. As a someone in the know at the center, the rent the landlord was charging was absurdly high, and he is unwilling to adjust his rates. I heard he was charging $10,000 per month rent on that spot. I doubt any club in this economy would try to bit that bullet.

  2. I really don’t see another club coming in. As a someone in the know at the center, the rent the landlord was charging was absurdly high, and he is unwilling to adjust his rates. I heard he was charging $10,000 per month rent on that spot. I doubt any club in this economy would try to bit that bullet.

  3. I really don't see another club coming in. As a someone in the know at the center, the rent the landlord was charging was absurdly high, and he is unwilling to adjust his rates. I heard he was charging $10,000 per month rent on that spot. I doubt any club in this economy would try to bit that bullet.

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