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We are in negotiations on a mutually agreeable exit out of Gold's Gym

Gold's Gyms in Appleton, Menasha and Green Bay will be called something other than Gold's Gym at the end of the month.

Gold's Gym International spokesman Dave Reiseman said the company and one of its Wisconsin franchisees, Vertical Fitness Group LLC, are in discussions "to arrange a mutual parting of ways," according to a post Thursday morning by Milwaukee Journal-Sentinel sports blogger Don Walker.
Vertical Fitness Group owns the three northeastern Wisconsin Gold's Gyms plus two more in Hales Corners and Racine.
Jon Barton and Jamie Nelson, two of the four owners here, confirmed they are in the process of splitting from the brand. Six more gyms in Minnesota that have some of the same partners also will leave the Gold's brand.
The 11 facilities have about 125,000 members. The three northeastern Wisconsin gyms have 25,000 members, according to Barton.
"We are in negotiations on a mutually agreeable exit out of Gold's Gym. Unfortunately this (announcement) is premature. We're not ready to put our whole plan out there yet," Barton said.
"We are not selling (the clubs). We're not closing them. The clubs will be exactly the same. No members' rates will change," Barton said.
Letters and emails will be sent to members by April 23 with details.
Barton said negotiations are confidential and that he can't disclose the terms of the split. The agreement has not yet been signed.
Likewise, Reiseman told the Journal-Sentinel that the conversations were ongoing and he couldn't discuss details.
"This was 100 percent our initiation to leave the brand," said Barton, disputing the Journal-Sentinel's headline that read "Gold's Gym looking to end ties to Wisconsin franchisee."
"The headline doesn't align with what really happened, but the context of the article is accurate," said Nelson.
"We can say we're in negotiations to leave the brand in a very mutually agreeable way so that we can pursue our model for a fitness center and take our model to other locations that the current franchise restrictions won't allow us to do," Barton said. "This is us desiring to move forward and expand. We want to wrap up our relationship with Gold's Gym in a positive way."
Barton said the ownership of the gyms will remain the same. The five Wisconsin branches are owned by Barton, Nelson, Tom Davidson and Jason Lang.
One member who has used the local Menasha and Appleton Gold's Gyms for four years said she wasn't concerned about a name change.
"Do I care if it doesn't have the Gold's Gym name on it? Probably not," said Christine Williams of Appleton. "I would be concerned if losing the Gold's name means they'd lose BodyStep and BodyFlow classes, which are (Les Mills) trademarked. As long as they have comparable classes, I'd be OK with it."
Williams was unhappy about the "overselling" of the gym when it went to a $10-a-month fee structure because it caused overcrowding at peak times. But overall she hoped the gym would remain open and continue with comparable services.
"There isn't any competition anymore. Lake Park is higher priced and it's difficult to get to from here. That leaves Planet Fitness, the Y and the 24-hour fitness places. There isn't competition of the caliber of Gold's."
Gold's International spokesman Dave Reiseman could not be reached.

“Material Girl” Madonna to open innovative new gym in Chile

Santiago will be the new home of the superstar´s third gym.

“Material Girl” star and fitness fanatic Madonna will bring her very own gym chain called Hard Candy Fitness (HCF) to Chile’s capital this April.

The announcement comes just months before the launch of the artist’s latest album, scheduled for release in March, titled “Gimme all your Luvin.’”

Gym-goers in Santiago looking for a body like the 54-year-old Queen of Pop can expect zumba, cardio kickboxing, and Latin moves classes as well as being able to sign up for dance and toning classes that reflect the superstar’s own style of workout.

Madonna’s collaborator and CEO and founding partner of Energy Fitness, Alex Wiesner, announced the opening on Tuesday. He promises that the gym will be like no other in the country.

“Hard Candy will focus on the playful aspects of dance and toning. We will bring Chile group classes created personally by Madonna and her international team of experts,” Wiesner told press. “Our members will be able to enjoy exercising using activities that will be unique in South America and of the highest quality.”

HCF already has two centers. The first opened in November 2010 in Mexico City and was followed in December 2011 by another in Moscow. Santiago will complete the trio of gyms already renowned for being lavish, top-of-the-range gyms offering fitness experience closer to that of a five-star hotel.

"If any of you have seen my shows, you know that I don't skimp on them, and the same is true for the gym. We spend what it takes to make a globally first-class gym,” Madonna said following the opening of the first Hard Candy gym in Mexico City.

Madonna, as with her other two gyms, has been very hands-on with the project from designing fitness programs, dance classes and the layout and decor of the center to advising on the music played in the gym.

The name Hard Candy Fitness was taken from Madonna’s album released in 2008 and is a combination of "hard body" (toned body) and "eye candy" (pleasing to the eye), two concepts that sum up the spirit of Madonna’s fitness mission.

The almost 10,000-square-foot gym in Santiago, located in the Parque Araucano mall in Las Condes, has cost $3 million to build and will have two levels, a spa, and two heated pools, one semi-Olympic and the other equipped with Jacuzzi technology for relaxation.

Other features include comfortable locker rooms with steam and sauna areas, personal trainers certified by HCF, and the latest in cardio and strength equipment.

The gym will also have a Hard Candy Energy Bar - a lounge area, which will offer healthy food as well as displaying artwork and music from some of Madonna's favorite artists.

The real highlight, however, Wiesner says, are the group classes designed by Madonna's personal trainer, Nicole Winhoffer.

"They are very motivating, very entertaining and they change quite often, every three months there are upgrades to the group class programs in order to constantly be offering something fresh, new and different," Wiesner told La Tecera.

The project is a collaboration between Madonna, her manager Guy Oseary, Wiesner and Mark Mastrov, a leader in the global fitness industry, creator of New Evolution Ventures (NeV) and CEO of 24 Hour Fitness.

The news comes amid rumors of a possible visit to the country by the celebrity in late 2012 as a part of her world tour. Whether the songstress herself will attend the opening of the gym like she did with the first HCF opening in Mexico has yet to be confirmed.

It is yet to be seen if the gym will be popular with Chileans, who were recently recorded to have the sixth highest rate of child obesity in e OECD and whether many will fork out the US$125 monthly membership as well as a one-time enrollment fee of US$210. The gym is, however, encouraging Chileans to register early online at www.energy.cl or at a stand in Parque Arauco mall for a reduced membership rate of US$88.

LA Fitness shut down for ongoing sanitary issues in the locker rooms, like clogged toilets, no soap and broken shower equipment.

Morton Grove shut down LA Fitness on Wednesday due to ongoing sanitary issues in the locker rooms, like clogged toilets, no soap and broken shower equipment, officials said.

More than 50 people had to leave the facility, 6821 Dempster St., when village officials closed it around 3 p.m., but most seemed to understand, said Ryan Horne, the village administrator pro-tem. The village has received many health complaints from gym members via e-mail, phone calls and at board meetings, he said.

Despite trying to work with the club’s local management and speaking with officials in the company’s corporate office, nothing has been fixed, he added.

“We are business friendly. We try to work with businesses to get them in compliance,” Horne said. “We absolutely did not want to do this.”

Formerly Bally’s Health Club, the gym changed ownership sometime in late November or early December. Since then, club members have complained about sanitary issues, with many saying the locker rooms are not equipped with toilet paper or soap. Six complaints came in the day the gym was shut down, Horne added.

Officials at LA Fitness could not immediately be reached for comment Thursday morning.

Horne said corporate officials told him they didn’t budget correctly for supplies because they had no idea what the demand would be. They promised to swiftly correct the problems, but “that didn’t happen,” Horne said.

“Maybe they just didn’t understand how busy this facility is,” Horne said. “This location, it’s an extremely busy club.”

During Wednesday’s inspection, health officials discovered no soap, clogged toilets and learned paper towels were being used instead of toilet paper in the locker rooms. They also found broken water fountains and an inoperable Americans with Disabilities Act-compliant shower.

The facility has also had a theft problem in the locker rooms, Horne said. Though corporate officials said they would make the areas more secure, four people on Wednesday afternoon reported someone broke into their lockers, officials said.

If the gym fixes the issues, it can call the village and inspectors will return to the site to see if the problems have been fixed. He said he would like to see the club open again, provided it’s not a danger to public health.

As people left the club, gym employees handed out addresses and numbers to other area LA Fitness clubs. Many gym-goers were glad to see the village addressing the situation, he said.

“As we were working, people were coming up to us and saying, ‘You should have shut this down months ago,’” Horne said. “No one was mad at us.”

Cybex International, Inc. Reports Fourth Quarter Results CYBI +22.37%

Cybex International, Inc. CYBI +22.37% , a leading U.S. manufacturer of premium exercise equipment, today reported results for the fourth quarter and year ended December 31, 2011. Net sales for the fourth quarter of 2011 were $43.1 million compared to $39.9 million for the corresponding 2010 period, an 8% increase. The Company reported net income of $34.7 million, or $2.03 per diluted share, compared to a net loss of ($57.1) million or ($3.34) per diluted share, reported for the corresponding 2010 period. The 2011 and 2010 results include a 2010 litigation charge pertaining to the jury verdict in the product liability suit, Barnhard v. Cybex International, Inc., and the 2011 adjustments to the charge relating to the settlement of the suit. Net income for the quarter excluding these charges and adjustments was $2.7 million or $0.16 per fully diluted share for 2011 and $1.5 million or $0.09 per fully diluted share for 2010.

For the year ended December 31, 2011, net sales were $140.1 million compared to $123.0 million for 2010, a 14% increase. Net income for the year ended December 31, 2011 was $34.3 million, or $2.00 per diluted share, compared to a net loss of ($58.2) million, or ($3.40) per diluted share, for 2010. The 2011 and 2010 results include the litigation charge, and adjustments related to the charge, which increase (decrease) the 2011 and 2010 full year results by $1.76 and ($3.43) per diluted share, respectively. Net income excluding these charges and adjustments were $4.1 million or $0.24 per fully diluted share for 2011 and $0.4 million or $0.03 per fully diluted share for 2010.

Cybex also announced that it has increased the limits of its product liability insurance coverage to $25,000,000 for claims brought after December 1, 2011.

"We are pleased to report strong sales growth in all market segments in Q4," said John Aglialoro, Cybex Chairman and CEO. "Sales in North America increased 3% and sales outside North America increased 20% for the fourth quarter. Importantly, we accomplished these results during a time of global economic uncertainty while confronting an unfair and excessive jury verdict which is now behind us. Our growth is a testament to the health of the company and the value customers have for our innovative and superior products."

Art Hicks, Cybex President and COO stated, "Operating income, excluding the impact of litigation charges, increased 40% in Q4 2011 compared to Q4 2010. We are excited to introduce our new Arc Trainer models and new entertainment displays at the International Health, Racquet & Sportsclub Association (IHRSA) trade show in March."

The Company will hold a conference call today, February 15, 2012 at 4:30 p.m. ET. Those who wish to participate in the conference call may telephone (888) 401-4685 from the U.S. or (719) 325-2122 for international callers. A live webcast of the conference call will be available at www.cybexintl.com or www.viavid.net . On Cybex's website under the category Company, click on Press, scroll to the bottom and select Q4 Earnings Release Conference Call. Please visit the website at least 15 minutes early to register for the teleconference webcast and download any necessary software. Real Player or Windows Media Player is required to listen to the webcast.

A replay of the call will be available through Saturday, February 25, 2012 by dialing (877) 870-5176 or (858) 384-5517 for international callers. The access code for the replay is 9476085.

About Cybex

Cybex International, Inc. is a leading manufacturer of premium exercise equipment primarily for commercial use. The Cybex product line, including a full range of strength and cardio training machines, is designed using exercise science to reflect the natural movement of the human body. Led by the Cybex Research Institute, Cybex fitness equipment is engineered to produce optimal results for users from the first-time exerciser to the professional athlete. Cybex products, designed and built in the USA, are available for a wide range of facilities, from commercial health clubs to home gyms, and are sold in more than 85 countries worldwide. For more information on Cybex and its product lines, visit the Company's website at www.cybexintl.com .

This news release may contain forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made above. These include, but are not limited to, the ability of the Company to comply with the terms of its credit facilities, competitive factors, technological and product developments, market demand, economic conditions, and the resolution of litigation involving the Company. Further information on these and other factors which could affect the Company's financial results can be found in the Company's previously filed Report on Form 10-K for the year ended December 31, 2010, its Reports on Form 10-Q, its Current Reports on Form 8-K, and its proxy statement dated April 14, 2011.

Now, she said she's aggravated she can't start her workouts at Powerhouse!

BATON ROUGE, LA - Signs promoting a $1 enrollment fee and $20 per month membership plans at Powerhouse Gym have been up for months on South Sherwood Forest Boulevard.The brand new gym was set to have a Jan. 13 grand opening. One member, who asked not to be identified, signed up in October.
"We thought, 'Okay, three months it'll be ready,'" the woman said. "New Year's resolution, you know, get in shape. Well, New Year's came around. They didn't open."
She said she paid $59 up front and some of her friends paid up to $700 for a full year's membership. Now, she said she's aggravated she can't start her workouts at Powerhouse. The woman is not alone. Dozens of people are taking their frustrations to the gym's Facebook page.Randy Young, the gym's general manager, said delays like this are normal."This will be my 109th gym," he said. "The original day was January 13th. The average gym in America opens between three months and six months late." The construction was on target for the January opening, according to Young, but problems with contractors slowed things down."When we first started the project we started with a contractor that was going to be a partner. [We] had problems with that contractor. He was building without permits," Young explained.City records show the department does not currently have permits on file to continue building Powerhouse Gym and in December, a stop-work order was issued.Young said he will have permits in the next couple of days and the gym should open in 30 days. That's two months after paid members planned to break a sweat in the gym. "You have other gyms in the area that have opened up in less time than this one has," one member said. "It was supposed to be a state-of-the-art place. I ain't seen it."Powerhouse insists the gym will be worth the wait and invited the news crew to tour the facility in the next couple of weeks to show progress. Young said members will not be billed until the gym open
http://www.wafb.com/story/16929444/contact-9-powerhouse-gym?autoStart=true&topVideoCatNo=default&clipId=6738801

Gold’s Gym Opens Valencia Presale Office

Gold’s Gym is opening a 5,000-square-foot preview center in Valencia today as it readies its new 35,000-square-foot location at Westfield Valencia Town Center to open later this summer.

The preview center is open for the local community to stop by and sign up for a special membership rate and workout.

Scheduled to open in August 2012, the new Gold’s Gym will be home to the cardio and weight equipment that includes individual LCD screens, iPod docking stations and a cardio movie theater, where members can watch films while working up a sweat.

Members can also take advantage of strength-training equipment, a heavy-bags area, 25-meter outdoor pool, tanning center, jacuzzi and whirlpool, as well as personal training, men and women’s eucalyptus steam and sauna areas, a supplement store, kid’s club, pro shop and a selection of group-exercise classes.

“We encourage everyone to stop by and check out our preview center to take advantage of our exceptional promotional rates and get a good feel for what’s to come,” said Rich Drengberg, vice president of sales and marketing for the Los Angeles’ Gold’s Gyms.

Gold’s Gym preview center is located in the Westfield Valencia Town Center at 24201 W. Valencia Blvd., Suite 2065.

Gold's Gym International Acquires 11 Spectrum Athletic Club Locations in San Antonio

Gold's Gym International

Gold's Gym International (GGI), the world's leading authority on health and fitness, announced today that it has signed an agreement to acquire all 11 Spectrum Athletic Club locations in the San Antonio area. The deal is officially slated to close by the end of February 2012. With 9 clubs already serving residents throughout the market, Gold's Gym will now have a total of 20 locations in the Alamo City.

"We are thrilled to bring these 11 Spectrum Athletic Clubs into the Gold's Gym family and feel this acquisition was a natural fit," said Jim Snow, president of Gold's Gym International. "Both of our organizations are built around a strong culture of service and a brand promise of delivering an outstanding fitness experience to our members. With 20 locations to choose from, it will now be more convenient than ever for San Antonio residents to stay in shape and reach their fitness goals. No matter where you live, chances are there's now a Gold's Gym right around the corner."

As part of the deal, the 11 Spectrum Athletic Clubs will rebrand under the Gold's Gym name. All current Spectrum memberships will be honored. In addition to having future access to current Gold's Gyms in San Antonio, Spectrum members will gain travel privileges to Gold's Gym's network of 700 gyms in 43 states and 30 countries. For Gold's Gym members, plans are being developed for a tiered membership option that would allow access to former Spectrum locations.

"We're confident that our members and our employees will be in good hands and will continue to enjoy the high level of service they've come to expect from us," said Bud Rockhill, chief executive officer of Spectrum. "We think it's a great fit and that the transition will be seamless. This deal will allow us to strategically invest in our twelve Spectrum locations in Southern California, a business that we will continue to operate going forward."

Spectrum members will now be serviced by a strong ownership group with years of award-winning customer service experience. GGI is one of the largest and most respected companies in the fitness industry. Founded in 1965, the company has more than 47 years experience delivering life-changing results for its members and is universally perceived as the authority in fitness.

In addition, GGI has invested heavily in club enhancements and development in recent months. This includes investing more than $20 million in club improvements, new gym development, franchise growth and acquisitions, all of which demonstrate the momentum behind the company. The company plans to build additional gyms in San Antonio.

"We are very bullish on San Antonio. It has truly become a fitness-conscious city in recent years and the demand for health and fitness services has grown rapidly," continued Snow. "This acquisition is a testament to our enthusiasm about the city and its potential. San Antonio is now the biggest market in our corporate portfolio and the second biggest Gold's Gym market in the country, right behind Washington, D.C. We look forward to growing with the San Antonio community for years to come."

Spectrum was advised by Integrity Square LLC, with legal advice from Burr & Forman LLP.

About Gold's GymEstablished in Venice, Calif. in 1965, Gold's Gym is the largest full service gym chain in the world with more than 700 locations in 43 states and 30 countries. Gold's Gym offers the latest equipment and services, including group exercise, personal training, cardiovascular equipment, group cycle, Pilates and yoga. With nearly 3 million members worldwide, Gold's Gym helps all kinds of people achieve their individual potential through fitness. For more information please visit www.goldsgym.com or www.facebook.com/goldsgym.

About Spectrum

Spectrum Clubs, Inc. is one of the most respected fitness companies in the United States, with twelve premium locations in Southern California. With roots that trace back to 1979, Spectrum offers spacious, modern facilities, highly trained staff, the latest in fitness equipment, high-end amenities and a full range of fitness programming. Spectrum prides itself in providing a fitness experience designed to help its members achieve their individual goals.

www.spectrumclubs.com

SOURCE Gold's Gym International

Health and Fitness Clubs industry is expected to remain in a growth phase, with revenue expected to rise at an average annual rate of 2.6% to $28.2 billion in the five years to 2016

Despite experiencing solid growth during the past decade (with the exception of the past two years), the market has not yet reached saturation. As a result, the Gym, Health and Fitness Clubs industry is expected to remain in a growth phase, with revenue expected to rise at an average annual rate of 2.6% to $28.2 billion in the five years to 2016, according to IBISWorld, the nation’s largest publisher of industry research. During this period, demand is expected to improve as the US economy stabilizes and unemployment declines. According to IBISWorld’s latest report, the Gym, Health and Fitness Clubs industry has benefited greatly from the vast array of marketing campaigns and ensuing consumer trends for fighting obesity and improving health. Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011. This trend has resulted in soaring demand for fitness activities, and industry operators have capitalized on this growth by expanding establishments in both size and number.However, the industry has not been recession-proof. In 2008 and 2009, demand for gyms and health clubs weakened as consumers cut back on discretionary spending. But compared with other industries, the Gym, Health and Fitness Clubs industry has remained remarkably resilient, as increased leisure time and boosts in health and morale from exercise have kept the industry highly competitive. Gyms and health clubs have broadened their markets and are offering value to gym-goers in a bid to retain membership numbers throughout the recession's aftermath. The downturn has also favored the growth of small-budget gyms with fewer amenities over more expensive, all-inclusive clubs. In fact, many smaller operators have expanded over the past two years despite the economic climate. Overall, industry revenue is expected to grow at an average annualized rate of 1.7% to $24.8 billion over the five years to 2011, including growth of 2.3% in 2011.According to IBISWorld analyst, Mary Gotaas, over the next five years, the industry will benefit from increased youth and baby boomer memberships. “Revenue will expand at an average annualized rate of 2.6% to $28.2 billion over the five years to 2016,” says Gotaas. “Firms will profit from growing interest in staying fit, and the industry will transition toward larger and all-inclusive clubs.” With total health club memberships expected to reach 47.5 million in 2016, players will capitalize on this growth and provide members with additional services in a bid to increase registration and retention rates.Due to the fragmented nature of the Gym, Health and Fitness Clubs industry, no players hold a market share larger than 5.0%. IBISWorld’s latest report findings discusses major players like 24 Hour Fitness Worldwide Inc., Life Time Fitness, Bally Total Fitness Holding Corporation, Curves International Inc., Town Sports International Holdings Inc., and Gold's Gym International Inc., a chain with more than 600 facilities in 40 US states and 30 countries.

Survival of the fittest

Even in the midst of the economic downturn, the industry has maintained steady growth, with membership rates growing consistently and profit remaining solid. Demand for gyms and health and fitness clubs will continue to rise over the next five years, as the general public becomes more health-conscious and the aging population places a greater emphasis on staying fit. Additionally, the amount of leisure time and growth in household incomes will positively affect businesses, leading operators to expand into larger facilities.In-depth industry market research presented in a logical and consistent format. Including pages of insights covering industry conditions, key statistics, competitor analysis and market share, product and customer segmentation and a 5 year forecast. Gym membership numbers have increased considerably over the past 10 years, rising from 36.3 million in 2002 to more than 42.8 million by 2011


Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

Health Club News: .... Brought to you by courtesy of http://fitnesslifemarketing.com/

Gym Operator to Invest $20M in San Diego Fitness Clubs

Gym Operator to Invest $20M in San Diego Fitness Clubs

24 Hour Fitness will make an investment of more than $20 million in its facilities in San Diego, Calif. within the next 24 months. This will be one of the most substantial market investments the firm has made over the past five years. 24 Hour Fitness operates more than 30 clubs in out of 420 clubs nationwide.

The investment program will involve relocations and upgrades to the clubs in Balboa, at University Towne Center and at Westfield Plaza Camino Real.

The Balboa club will relocate from its current location at 7620 Balboa Avenue into a former Albertson’s space at Vista Balboa Center in Kearny Mesa. The new club will feature more than 65,000 square feet of workout space, a full-sized basketball court and an indoor lap pool, among other amenities. The club at 4405 La Jolla Village Drive will move to a new space within Westfield University Towne Center. It will contain more than 45,000 square feet and feature a full-sized basketball court. The club in Carlsbad will relocate from 2213 South El Camino Real to a former Robinsons May space in Oceanside. The club will contain more than 56,000 square feet of space and will feature a full-sized basketball court, a four-lane lap pool, a whirlpool and an extensive outdoor aquatic area, among other things.

“Expansion is always exciting for our company, but even more so today because we have such deep ties to the residents of San Diego, many of whom have been members for more than 20 years,” said Jim McPhail, executive vice president of real estate and chief development officer with 24 Hour Fitness in a statement. “We’re confident these relocations and upgrades will greatly improve our members’ club experience, while also continuing to provide them with the access, convenience and value they’ve come to expect from 24 Hour Fitness.”

Health club to fight against strip club

ALBUQUERQUE, N.M. -- Neighbors said they want a brand-new strip club in the northeast heights gone, but after Monday’s City Council meeting, the fully nude club won’t be stripped of its location. The Palms Gentleman Club will stay open mostly because the majority of City Council members agreed that a nearby gym’s child care program doesn’t count as a school.“Is a fitness center a school? Has anyone ever held that a fitness center is a school? It’s almost preposterous to make that claim,” Palms attorney Roger Diamond said.
From the beginning the controversy has been over the club’s location. The Palms club is right across the parking lot from a Defined Fitness and a Chili’s. The gym’s attorney argued that their child care program qualified them as a day care, meaning the strip club would be a no go because it was within 500 feet of a pre-elementary service.“I think that could be a school. If a day care is a school, then that is a school,” City Council President Don Harris said. Harris said the gym’s 10-week summer program, where kids spend hours learning, sure seemed like a school to him. But most council members said that the gym didn’t advertise itself as a school and doesn’t have the proper permits or licensed teachers on staff.All of that means the club is here to stay.
The club also pointed out that it’s creating up to 40 local jobs. The gym said those jobs are coming at the expense of the hundreds of families that use their workout facility on a daily basis.The Palms will not serve alcohol because it’s fully nude.

Health Club News.....Pole fitness gym in Knoxville facing opposition

By JOSH AULT
6 News Reporter
KNOXVILLE (WATE) - It has been three months since a new fitness club opened its doors in Knoxville. 6 News first told you about the business back in May.What makes this club unusual is the patrons use poles to exercise on. Recently, the club's owner says she has been harassed because some feel it is a strip club.On Saturday, we were invited to a beginner's class at Pole LaRotic Fitness located on Broadway Avenue. Many of the new members were excited that this type of fitness could be found in Knoxville. They do not consider it stripping."It is more of a workout, and dance class," said Camelia Mulhall, a first time participant, "It doesn't have that I'm in a strip club feel to it. It is just a bunch of women getting together acting silly, and getting fit at the same time."When Nastassia Ligon, the club's owner, opened the gym, she never thought she would have problems with the community.She was wrong. "We have had several harassments," said Ligon. "They have been throwing trash in front of the building. They have cut our phone wires, and been calling harassing us, and filing complaints with the city and saying that this was a strip club."
Ligon showed us a rusty nail that had been driven through their outside phone wire this week. She filed a police report, and more patrols are going to be done in the area for the next few weeks.Ligon just wants people to know that this is not a strip club."Basically, this is a place, a new fun and way to get fit, instead using the treadmills and the same old exercises," said Ligon. "The women come here to build their confidence, and have fun."Ligon is planning an open house in September, so the entire family can come by and see what pole fitness is all about.Those who have already signed up hope others can see the benefits of this vertical exercise."Lighten up, get over it," said Bridgette O'Dell, who completed her first class Saturday. "It is not bad. It really isn't. I think it is more about is making women aware of their bodies and making them appreciate their bodies, and it is just a different way to get fit. I like it."Ligon says because of all the complaints to the city, building permit officials have raised concerns about having a gym in this part of town.She says they will be making a final decision about if they get to stay here in August.Pole LaRotic Fitness already has more than 800 members.

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LA Fitness to open at SouthSide Works

The Soffer Organization formally announced that LA Fitness plans to open a facility at the SouthSide Works in the former 23,189 square foot location of Joseph-Beth Booksellers on the corner of 27th and Carson Streets.The two-level fitness center plans to open by the end of the year and employ 40 people. It will be the seventh location in the Pittsburgh area for LA Fitness LA Fitness Latest from The Business Journals Gym business undergoes upheavalEdwards Marq*E renovation unveiled, retail space lostNine West to close at SouthSide Works Follow this company .Damian Soffer, president and CEO of the Soffer Organization, called LA Fitness a “perfect addition” for the development and the South Side as a whole.
William Horner, senior vice president and chief real estate officer of LA Fitness International, said the new location is expected to appeal to residents of the South Side, Mount Washington and Oakland.The location will offer more than 80 pieces of the latest cardio equipment with individual viewing screens, circuit training, and free weight areas as well as group fitness classes that include indoor cycling, dance, Pilates and yoga in a facility somewhat smaller than other LA Fitness locations in the region.LA Fitness has begun distributing fliers to recruit new membership for the new South Side location, offering month-to-month no contract memberships with $99 registration and monthly dues of $29.99.
By: Tim Schooley covers retail, real estate, small business, hospitality and media for the Pittsburgh Business Times

Muscle Beach® Comes to the Carolinas

Muscle Beach® Comes to the Carolinas


- Muscle Beach®, the iconic fitness brand that single-handedly jumpstarted the fitness revolution, has converted a former Nautilus Fitness Center in Orangeburg South Carolina to their prestigious brand.Wilbraham, MA, July 19, 2011 -- Muscle Beach®, the iconic fitness brand that single-handedly jumpstarted the fitness revolution, has converted a former Nautilus Fitness Center in Orangeburg South Carolina to their prestigious brand.“As the entity that led to the establishment of Gold's Gym® and a number of other well-known fitness chains, it should come as no surprise to anyone that we’re now the brand of choice throughout the industry,” comments Muscle Beach® Founder and Chairman, Danny Lucien “The Solution” Tschirret.With over 30,000 square feet of space, the facility offers a fitness center, group exercise studio, basketball court, racquetball court, martial arts dojo, and a swimming pool. It is owned by Ramon and Asha Rodriguez, who have operated the club for more than 25 years.
“With Muscle Beach®, we instantly went from ordinary to legendary; from a club with virtually no identity to one with worldwide recognition and mass appeal. And all we had to do to accomplish that was to change our signage. It was that easy,” comments Asha.“We were looking for a well-established name, but didn’t want to get hammered with huge franchise fees or have our method of operation restricted,” adds Ramon.The couple looks forward to continuing the long rich history and tradition of Muscle Beach® in Orangeburg South Carolina, where they will operate their facility as a Muscle Beach® athletic club.To open a new Muscle Beach® fitness business or convert an existing one to their prestigious brand, call 413-575-5320 or visit www.musclebeachbrand.com. About Muscle Beach®:An American institution and fitness icon, Muscle Beach® is owned by United States-based Muscle Beach, Inc. With operations in more than 50 countries, they are the world's largest fitness promotion. More than 75 years ago, Muscle Beach single-handedly jumpstarted the fitness revolution; the movement that led to the eventual establishment of Gold's Gym® and a number of other well-known fitness chains.An American institution and fitness icon, Muscle Beach® is owned by United States-based Muscle Beach, Inc.
Contact:
Daniel Tschirret, MBA
Muscle Beach, Inc.
2141 Boston Road
Wilbraham, MA 01095

Health Club News .....Ethics rule on free health club admission

CHARLESTON, W.Va. -- A 21-year-old state ethics rule barring West Virginia elected officials and public employees from accepting free admission to health clubs and exercise centers could be revised soon. The Ethics Commission on Thursday debated, but did not vote on a request from a state agency attorney seeking an exception to the health club ban for those traveling on government business.
At issue are hotels and motels that don't have on-site exercise facilities, but provide passes or reimburse costs for guests to visit nearby health clubs.
Under a legislative rule adopted in 1990, public employees and officials are barred from accepting a variety of perks and benefits while traveling or attending conferences. In addition to being prohibited from accepting free passes to health clubs, public officials cannot accept free rounds of golf, for example.
Joan Parker, commission general counsel, noted that when the rule was adopted, hotels that featured health clubs typically provided premium facilities, offering massages and other spa services -- a benefit distinct from today's exercise and workout centers.In the request for an advisory opinion, the agency attorney noted that, these days, most hotels and motels provide exercise facilities at no additional charge to guests, and stated that agency staff should not be barred from accepting health club passes from those hotels that do not have on-site facilities.
"West Virginia is at the top of the list for obesity and other health problems," the request noted. "The state should be encouraging people to exercise when traveling on government business."Parker noted that a recent Ethics Commission advisory opinion similarly deemed that public employees' participation in free or discounted wellness programs does not constitute a violation of the state Ethics Act's prohibition on using public office for private gain.The commission on Thursday postponed a vote to approve the advisory opinion until August, after some commissioners raised questions, including former state Sen. Jack Buckalew.
"What would you say to the golfer who says, "I play golf for exercise?" he asked.
Parker said golf raises separate ethical issues, since the person who pays for the round of golf is effectively paying for access to the public official during the round.
Buckalew said he had other issues with the request, contending that public officials should be expected to carry out their public duties without the expectation of any "enticements," such as access to exercise facilities when traveling.
Under the Ethics Act, the identities of individuals or agencies seeking advisory opinions are kept confidential.
By Phil Kabler

Health Club News...Five Gold's Gyms converting to Fitness Connection health clubs

A Virginia company that owns five Gold's Gyms in the Triangle is converting the health clubs to a new name and promising various improvements for members.McLean, Va.-based Titan Fitness is changing the local Gold's locations to Fitness Connection clubs. Members will start to notice new signs as early as next week, said Titan spokesman Matt Amodeo.Health clubs changing hands often create hassles related to fees, contracts and other changes that spur complaints among members. But Amodeo said this transition should be seamless for local customers.The clubs' staff, contracts and prices won't change. The parent corporation is also the same and Titan plans to add new equipment, age-specific fitness programs, dietitians and other services."We want to adopt an overall wellness approach," Amodeo said. "We have more flexibility as an independent chain to add things members have been asking for."Titan recently bought the Houston-based Fitness Connection chain and ended its affiliation with Gold's. Titan owns 17 clubs in the Triangle; Greenville, N.C.; Houston, Texas; and Nevada.But one change will effect local members who travel. Previously, they could use other Gold's Gyms across the country for free.Now members will have access to more than 9,000 clubs in other cities affiliated with the International Health, Racquet & Sportsclub Association. Many will offer free access, but some will charge a small fee, Amodeo said.The conversion of the Gold's locations in this market will happen over the next three or four months, including various marketing and education efforts to explain the switch, Amodeo said. After that, Titan will look to add more Fitness Connection clubs in this region.The Gold's Gyms that are converting to Fitness Connection are located in Raleigh at North Hills, on Six Forks Road and on Glenwood Avenue; in Cary on Kildaire Farm Road; and in the Durham side of Research Triangle Park on Emperor Blvd.

Health Club News...YMCA gym sold to Griffith Development LLC

Griffith Development LLC has bought the gym housing the Beaverton Family YMCA for $1.28 million, a sale that closed Monday afternoon, according to Dann Wonser, real estate broker at Macadam Forbes.

The previous property owner, Pardee Properties, managed by Tami Pardee, sold the site at 4925 S.W. Griffith Drive after settling a $1.5 million lawsuit with the YMCA of Columbia-Willamette.

In the lawsuit, Pardee alleged that the nonprofit broke its lease agreement by persuading members to join a competing gym and failing to repair or replace equipment.

As part of the settlement, the gym will close July 29 and transfer gym membership, group exercise programs and older-adult programs to the Beaverton Hoop YMCA. By the end of August, the YMCA will no longer have any financial obligations with Pardee.

Griffith Development, an investor, plans to remodel the site and reopen it fall 2012, according to Bruce Patton, YMCA vice president.

-- Dominique Fong Follow @BvrtnReporter

Health Club News ....YMCA to close Health Club Facility

The YMCA of Columbia-Willamette is closing its Beaverton Family gym, after the site's property owner dropped a $1.5 million lawsuit and reached a settlement with the nonprofit. The Beaverton Family site at 4925 S.W. Griffith Drive will close July 29, according to a statement from Bruce Patton, the nonprofit’s vice president.
Starting Aug. 1, gym membership, group exercise programs and older adult programs will be transferred to the Beaverton Hoop YMCA at 9685 S.W. Harvest Court, according to a memo sent out to gym members, volunteers and staff.
The announcement comes nearly a year after Tami Pardee, co-owner of the property with her husband Michael Pardee, filed a lawsuit claiming that the nonprofit broke its lease agreement. In the lawsuit, Tami Pardee alleged that the nonprofit tried to persuade Beaverton Family members to join the Hoop location – when, according to the agreement, it was supposed to return club membership to Pardee once the 10-year lease expired in 2013 – and failed to repair or replace equipment. Pardee and the YMCA reached a settlement after Pardee identified a buyer for the property, which has an assessed value of $3,249,830, according to Washington County assessment and taxation records. The price of the sale – which the memo says is “imminent” – and the name of the buyer are unknown. “We made a reasonable settlement regarding both the balance of the lease obligation and the facility maintenance,” Patton said in a statement. Patton would not disclose the remaining balance to be paid or how much maintenance would cost the nonprofit, only that the nonprofit’s financial obligations to Pardee end Aug. 31, 2011. The new owner plans to remodel the building and reopen fall 2012, Patton said. When the Beaverton Family gym reduced hours and cut services last fall, some members dropped their affiliation and a high school racquetball team scrambled to find a gym for practice.
Besides the Beaverton clubs, the YMCA also manages fitness centers, camps and youth sports in Portland, Vancouver, Gresham and Sherwood. Pardee, who lives in California, bought the health club from her father, who opened it in 1978. Calls were left with Pardee and her attorney for comment.
-- Dominique Fong
Follow @BvrtnReporter

Health Club News....Former Peak Fitness Executives Charged with Fraud

Jeffrey Stec and Kenneth Handley, former executives of the bankrupt Peak Fitness club chain, have been charged with commercial loan fraud and money laundering conspiracy, the Charlotte Observer reports. Stec, who owned Peak Fitness, and Handley, who was the company’s chief financial officer, fraudulently obtained loans from Wells Fargo and Wachovia, loans that ended up costing the banking institutions almost $2 million combined, according to court documents filed in an indictment on Monday. Prosecutors say Stec and Handley wanted to purchase a condo on Isle of Palms, SC, for $915,000, and the money from a $590,000 commercial loan from Wachovia obtained in 2007 was diverted into Handley’s personal bank account, the newspaper reports. Handley later was approved for an $856,000 loan from Wells Fargo, most of which was transferred back into business accounts, the indictment says.
Stec also obtained three more loans from Wachovia in 2007 and 2008 totaling $3.8 million. The loans allegedly were intended to build or upgrade clubs in Winston-Salem, NC; Kingsport, TN; and Danville, VA, but the money was diverted to other purposes, according to the Observer. Prosecutors claim Wells Fargo lost about $230,000 and Wachovia about $1.7 million. Stec sold Fitness Management Group, the parent company of Peak Fitness, in 2007 and bought it back the following year. He also owned Peak Performance Motorsports, which he used for NASCAR competition, according to the indictment. Fitness Management Group filed for bankruptcy in 2009. Nevada-based Fuzion Investment Capital LLC bought the assets of Peak Fitness out of bankruptcy and later added Allstate Financial Group, Bothell, WA, as an investor. The former Peak Fitness clubs that remained in operation were changed to ZX Fitness. Last month, ZX Fitness closed three clubs in South Carolina.

Health Club News...Titan Fitness has completed a $4.6 million equity offering.

HOUSTON -- Titan Fitness has completed a $4.6 million equity offering, raising the amount from three investors. The owner and operator of 15 Fitness Connection health clubs in Raleigh, N.C., Reno, Nevada, and Houston, Texas is backed by WestView Capital Partners, a $500 million private equity fund based in Boston, and National City Equity Partners, a Cleveland based private equity fund.Executives and directors named in an SEC filing disclosing the capital raise include:

- Jeffrey Skeen, CEO
- A.J. Mushtaq, CFO
- Aaron Lieberman, CDO
- Dal Clayton, COO
- Josh Harwood, SVP
- John Turner from Boston-based WestView Capital Partners
- Matthew Carroll from WestView Capital Partners
- Richard Williams from WestView Capital Partners
- Steve Pattison from Cleveland-based National City Equity Partners

Prior to forming Titan Fitness, Skeen was a principal and the CEO of Titan Management Solutions (TMS), where he worked with Gold's Gym franchisees in opening and operating gyms throughout the U.S. Before that, Skeen was a principal and CIO of Gold's Gym International for four years.Headquartered in McLean, Va., Titan creates, acquires, and operate health clubs and says that it intends to purchase health club chains with strong management teams in place that have a focus on growth. Titan says that it will provide the processes, systems and tools for each regional management team to operate as fitness franchise in their respective markets.Earlier this month, Gold's Gym International announced that it has agreed to part ways with Titan Fitness.
By Brian Wolak

Health Club News......The Top 100 Health Clubs

By Stuart Goldman, managing editor
Click Here For Full Story.
Club Industry
On the surface, Club Industry’s Top 100 Clubs list for 2010 looks a lot like the Top 100 Clubs list for 2009. The top four clubs this year were the same top four clubs last year.24 Hour Fitness, San Ramon, CA, is once again at the top of the list with an estimated $1.352 billion in 2010 revenue. This marks the eighth consecutive year that 24 Hour has topped the Top 100 list. 24 Hour, a private company, did not provide a specific revenue number, instead stating that its revenue was more than $1 billion. However, based on the company’s number last year, we have estimated the $1.352 billion. Whereas 24 Hour listed more than 425 clubs in operation at the end of 2009, the company listed 420 clubs in operation at the end of 2010 after the relocation and closing of some clubs. LA Fitness, Irvine, CA, is second for the second year in a row with an estimated $1 billion in 2010 revenue. LA Fitness reported 36 more clubs in 2010 than it had in operation in 2009. (LA Fitness also would not offer a specific figure for 2010 revenue.) Earlier this year, LA Fitness was in discussions to acquire Urban Active, Lexington, KY, which is owned by parent company Global Fitness Holdings, but that deal fell through. Urban Active just missed making the top 10 on this year’s list, coming in at No. 11 with a reported $100.2 million, a 16 percent increase over its $86.7 million revenue in 2009. The proposed acquisition might have pushed LA Fitness into the No. 1 spot on next year’s Top 100 Clubs list. Life Time Fitness, Chanhassen, MN, is No. 3 on the list with a reported $912.8 million in revenue, a 9 percent increase from its 2009 revenue of a reported $837 million. Despite the recession of the previous two years, Life Time has steadily increased its revenue the past three years. It experienced a 9 percent increase in revenue in 2009 from $769.6 million in 2008. Club Corp., Dallas, holds steady at No. 4 with an estimated $812 million in 2010 revenue. Although the company did not provide specific numbers, a source confirmed that the $812 million estimate was in line with the same revenue the company reported in 2009.
The new club on this year’s list is not really a new name but perhaps the most intriguing. Bally Total Fitness, Chicago, which became a private company after two bankruptcies and did not report revenue figures a year ago, is No. 5 with a reported $550 million in 2010 revenue. That figure is a 48 percent decrease from its reported revenue of $1.059 billion in 2006. Bally’s decline includes a sharp drop from 2006 to 2007 revenue ($650 million) and a slight decrease from 2007 to 2008 revenue ($634 million). Bally reported 276 clubs in operation in 2010. That’s also a sharp decline from the 400 clubs it had in operation in 2006. Bally closed a number of clubs after its second bankruptcy in 2009. It remains to be seen whether Bally will appear on next year’s Top 100 Clubs list. As of the date this story was posted, there were indications of serious negotiations of a sale of Bally to Gold’s Gym International, Irving, TX, which would produce a seismic shift in the landscape of the industry. Gold’s, which is owned by private equity firm TRT Holdings, has not reported revenue figures for several years, although it did report 700 clubs in operation in 2010. A Bally sale has been rumored in the past, especially after its second bankruptcy. According to several sources, this time, a sale could be imminent. Town Sports International, New York, comes in at No. 6 on this year’s list with a reported $462.4 million in revenue. That’s a 5 percent decrease from 2009 ($485.4 million) and a 9 percent decrease from 2008 ($506.7 million). Planet Fitness, Newington, NH, continues its steady rise on the Top 100 Clubs list, ranking No. 7 with $157.1 million in 2010 revenue, a 21 percent increase from 2009 ($129.5 million). Planet Fitness, which was No. 8 last year and No. 10 two years ago, reported 390 clubs in operation compared to 310 in 2009. The 2010 revenue for Planet Fitness includes its 33.3 percent stake in PFNY LLC, Yonkers, NY, a Planet Fitness franchisee that operates 26 clubs in the New York City area. PFNY is No. 20 on this year’s Top 100 list with $56.3 million in 2010 revenue. Capital Fitness Inc., Big Rock, IL, which operates Xsport Fitness, is No. 8 with $142 million in revenue. Rounding out the top 10 are No. 9 Western Athletic Clubs, San Francisco ($121 million, which was a 13 percent increase in revenue), and No. 10 Lifestyle Family Fitness, St. Petersburg, FL ($102.4 million). After Urban Active at No. 11, the next four club companies on this year’s list also are familiar names in the industry: No. 12 Midtown Athletic Clubs, Chicago ($93 million); No. 13 Millennium Partners Sports Club Management, Boston ($92 million); No. 14 Sport and Health, McLean, VA ($90 million); and No. 15 Club One, San Francisco ($79.5 million). Of those four companies, Midtown Athletic Clubs experienced the greatest revenue growth—a 12 percent increase from its $83 million in revenue in 2009. Equinox, New York, which was No. 6 on last year’s Top 100 Clubs list with an estimated $344 million in revenue, did not provide numbers for this year’s list, so it has been moved to the missing club company list. For all companies on this year’s Top 100 Clubs list that did not provide specific revenue figures for 2010, their revenue was estimated flat.
After the July issue of Club Industry went to press, Spectrum Athletic Clubs, El Segundo, CA, reported it had $90 million in revenue in 2010, which would have placed the company in a tie for 14th on this year’s Top 100 Clubs list. However, because its 2009 revenue of $89.2 million was an estimate, the company does not appear on this year’s list. Also, New York Health and Racquet Club (NYHRC), New York, responded with its financial information for 2010 after the July issue deadline. NYHRC reported $41 million in revenue for 2010, which would have placed the company 27th on this year’s list. However, it is listed at No. 21 on this year’s list with a flat estimate of $55.7 million from 2009. One company that made a huge leap on the Top 100 Clubs list was American Leisure Corp., Nanuet, NY. American Leisure jumped from No. 83 on last year’s list (when it had an estimated $7.2 million) to No. 48 with a reported $20 million in 2010. Officials at the company credit the acquisition of a few big accounts—one of which is in Saudi Arabia—for the increase. PH Fitness Inc., dba Fitness First, Frederick MD, also had a dramatic increase in revenue. PH Fitness reported $36.8 million in 2010, good for 31st place on this year’s list. Last year, PH Fitness was at No. 45 after reporting $25 million in 2009. Owner Peter Harvey credits implementing personal training in his clubs for the rise in revenue.“Frankly, it’s getting more competitive than ever,” Harvey says.
Making its debut on the Top 100 Clubs list is Mountainside Fitness, Tempe, AZ, which tied for 44th with Healthworks Fitness Centers, Boston, with $23 million in 2010 revenue. Eight of the nine Mountainside clubs are in Arizona, with the other club located in Colorado. Anytime Fitness, Hastings, MN, and Snap Fitness, Chanhassen, MN—both 24-hour key-card club companies—climbed a few spots this year. Anytime Fitness reported $33.7 million in revenue in 2010, a 12 percent increase that moved it from 38th to 35th place on this year’s list. Snap Fitness reported $29 million in 2010 revenue, a 9 percent increase that moved it from 44th to 41st place. Cooper Fitness Center, Dallas, saw a decrease in revenue, caused by the fact that it no longer owns the Craig Ranch location but does have a management contract to run the facility. Cooper Fitness Center reported $8.3 million in 2010 revenue after reporting $12.4 million in 2009 revenue, resulting in a fall from 62nd to 78th place on this year’s list. Of the 100 companies on this year’s list, nearly half (47) reported increases in revenue from 2009 to 2010. Only 17 club companies reported decreases in revenue compared to 36 companies that had decreases on last year’s list. In some cases, revenue increases or decreases were influenced by the number of employees that companies reported in 2010. Of the 100 companies on this list, 28 gained employees, and 28 had fewer employees than they had in 2009. Almost one-fourth of the companies (23) had no change in their number of employees. The Top 100 Clubs list ranks club companies by revenue in the previous year. It is not intended to rank clubs based on quality or segment service.
Missing Clubs
The following clubs and franchisors are large enough to be included on the Top 100 Clubs list, but their owners did not complete a Top 100 Clubs form, and we were not able to find another way to estimate their revenue.

The Alaska Clubs, Anchorage, AK
Bailey’s Gym Inc., dba Powerhouse Gyms, Jacksonville, FL
Brick Bodies, Cockeysville, MD
California Family Fitness, Orangevale, CA
Champion Fitness Inc., dba Bally Total Fitness, Syracuse, NY
Chelsea Piers, New York, NY
Club Fit, Jefferson Valley, NY
Curves, Waco, TX
Equinox, New York, NY
Fitness USA, West Bloomfield, MI
Franco’s Athletic Clubs, Mandeville, LA
Gold’s Gym International, Irving, TX
Healthplex Sports Club, Springfield, PA
In-Shape Health Club Inc., Stockton, CA
Lady of America, Fort Lauderdale, FL
Lakeshore Athletic Clubs, Chicago
MVP Sportsclubs, Orlando, FL
PRO Sports Club, Bellevue, WA
SIM Investment Corp., dba The Right Stuff Health Club, San Jose, CA
Spectrum Athletic Clubs, El Segundo, CA
Titan Fitness Holdings, McLean, VA
Wheaton Sports Center, Wheaton, IL
Women’s Workout World, Chicago
WOW! Work Out World, Wall, NJ
WTS International, Rockville, MD