Comments on: AllStar Fitness bankruptcy: Cancellation sought for 2,100 prepaid contracts http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts West Seattle news, information, and discussion, updated multiple times daily, 24/7/365 Thu, 23 May 2013 15:20:23 +0200 hourly 1 http://wordpress.org/?v=3.4.2 By: Jenny http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-982972 Jenny Thu, 14 Mar 2013 03:50:44 +0000 http://westseattleblog.com/?p=144295#comment-982972 I have written a letter to the judge and the lawyers for the Trusttess. For those who do want to write letters, I am posting a portion of what I wrote in case others want to use or borrow my copy: "My present contract, for which I have already paid both my dues and the yearly maintenance fee, is not set to expire until March 9, 2014. I understand that when it is once again up for renewal, assuming the Club is sold, those terms may not be offered to me again. My next renewal window would be the appropriate time to end or modify the terms of my membership. Therefore, I am opposed to any sale that would terminate legal membership agreements like mine. Mr. Sam Adams, who has been identified as the party interested in buying the club, has been quoted in the local media as stating he intends to honor “99 percent of them” in reference to the approximately 2100 contracts that include terms like mine. He has also been quoted as saying he “thinks” membership terms of two years or more are illegal. The terms being requested by the Trustee in the notice I received does nothing to allay my concern that a membership agreement of more than 12 months and equal or less than 24 months will be honored. Therefore, I ask that you require the Trustee to stipulate in greater detail exactly which agreements are to be nullified before you approve this sale." I have written a letter to the judge and the lawyers for the Trusttess. For those who do want to write letters, I am posting a portion of what I wrote in case others want to use or borrow my copy:

“My present contract, for which I have already paid both my dues and the yearly maintenance fee, is not set to expire until March 9, 2014. I understand that when it is once again up for renewal, assuming the Club is sold, those terms may not be offered to me again. My next renewal window would be the appropriate time to end or modify the terms of my membership. Therefore, I am opposed to any sale that would terminate legal membership agreements like mine.

Mr. Sam Adams, who has been identified as the party interested in buying the club, has been quoted in the local media as stating he intends to honor “99 percent of them” in reference to the approximately 2100 contracts that include terms like mine. He has also been quoted as saying he “thinks” membership terms of two years or more are illegal.

The terms being requested by the Trustee in the notice I received does nothing to allay my concern that a membership agreement of more than 12 months and equal or less than 24 months will be honored. Therefore, I ask that you require the Trustee to stipulate in greater detail exactly which agreements are to be nullified before you approve this sale.”

]]> By: Eileen http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-982801 Eileen Wed, 13 Mar 2013 20:45:03 +0000 http://westseattleblog.com/?p=144295#comment-982801 Let it be known that it was AT THE REQUEST of Mr. Adams that the "pre-petition" contracts (i.e., contracts signed before August 27th, 2012) be REJECTED as one of the conditions upon which he would agree to PURCHASE the club. For him to now say that he "intends to honor 99%" of those contract is pure public relations B.S., meant to placate you as you sit on your rights to contest a sale which will kick you out as a current member. If you are one of the 2,100 members (who constitute one-third of the club), you need to OBJECT to the proposed sale IN WRITING, by MARCH 20TH, and attend the hearing on the 22nd if you are able. If Mr. Adams wants to buy the club, he can buy it on terms that will HONOR YOUR CONTRACT and what you have already paid to All Star - -versus giving sheer public relations lip-service which directly contradicts the terms of the sale (i.e., rejecting your contracts) which HE MADE. If you can persuade the Judge to REJECT the proposed terms of the sale, even if that results in a temporary club closure, it CREATES the opportunity for a legitimate and honorable club buyer who will HONOR YOUR CLUB MEMBERSHIP. Let it be known that it was AT THE REQUEST of Mr. Adams that the “pre-petition” contracts (i.e., contracts signed before August 27th, 2012) be REJECTED as one of the conditions upon which he would agree to PURCHASE the club. For him to now say that he “intends to honor 99%” of those contract is pure public relations B.S., meant to placate you as you sit on your rights to contest a sale which will kick you out as a current member. If you are one of the 2,100 members (who constitute one-third of the club), you need to OBJECT to the proposed sale IN WRITING, by MARCH 20TH, and attend the hearing on the 22nd if you are able. If Mr. Adams wants to buy the club, he can buy it on terms that will HONOR YOUR CONTRACT and what you have already paid to All Star – -versus giving sheer public relations lip-service which directly contradicts the terms of the sale (i.e., rejecting your contracts) which HE MADE. If you can persuade the Judge to REJECT the proposed terms of the sale, even if that results in a temporary club closure, it CREATES the opportunity for a legitimate and honorable club buyer who will HONOR YOUR CLUB MEMBERSHIP.

]]> By: FF http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-982277 FF Wed, 13 Mar 2013 00:35:56 +0000 http://westseattleblog.com/?p=144295#comment-982277 The only person making decisions or who is In Control right now is the Trustee. The prospective (future) owner can do nothing but make suggestions. Sam Adams isn't to blame here. The Trustee is just doing his job. This whole mess is because of bad business decisions which led to lack of Capital. The Trustee is trying to keep All Star Fitness from "slipping under the waves." He is propping up the club until the new owner can or will take over. The Deal is FAR from being DONE. Sam Adams could still back out and if he did the club would most likely close forever. The sale of the Long Term Contracts at a discounted rate generated Short Term CASH but also are a LONG TERM LIABILITY. (See: "Robbing Peter to Pay Paul.") It's a very short sighted thing to do, especially at the Buy 1 year get 6 months free. If they hadn't offered these contract terms the club would have closed long ago. Read the documents and then decide what to do if and when the sale goes through. Sam Adams can turn the club around if enough people will give him a chance. I think he will be a good owner. If you think LA Fitness is a better deal then go there. Just remember to Google LA Fitness ahead of time to see that they too have had issues with memberships. The only person making decisions or who is In Control right now is the Trustee.

The prospective (future) owner can do nothing but make suggestions. Sam Adams isn’t to blame here. The Trustee is just doing his job. This whole mess is because of bad business decisions which led to lack of Capital.

The Trustee is trying to keep All Star Fitness from “slipping under the waves.” He is propping up the club until the new owner can or will take over.

The Deal is FAR from being DONE.

Sam Adams could still back out and if he did the club would most likely close forever.

The sale of the Long Term Contracts at a discounted rate generated Short Term CASH but also are a LONG TERM LIABILITY. (See: “Robbing Peter to Pay Paul.”)

It’s a very short sighted thing to do, especially at the Buy 1 year get 6 months free. If they hadn’t offered these contract terms the club would have closed long ago.

Read the documents and then decide what to do if and when the sale goes through.

Sam Adams can turn the club around if enough people will give him a chance. I think he will be a good owner. If you think LA Fitness is a better deal then go there. Just remember to Google LA Fitness ahead of time to see that they too have had issues with memberships.

]]> By: Eddie http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-982200 Eddie Tue, 12 Mar 2013 21:55:38 +0000 http://westseattleblog.com/?p=144295#comment-982200 And maintaining those pre-arranged (I hesitate to say "pre-paid" as who knows where the money went...) memberships has a very small-to-no incremental cost to the new owner. So what if a few additional long time members use the facility - will it really increase the cost of towels or equipment maintenance? And maintaining those pre-arranged (I hesitate to say “pre-paid” as who knows where the money went…) memberships has a very small-to-no incremental cost to the new owner. So what if a few additional long time members use the facility – will it really increase the cost of towels or equipment maintenance?

]]> By: JTB http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-982052 JTB Tue, 12 Mar 2013 16:23:29 +0000 http://westseattleblog.com/?p=144295#comment-982052 There appears to be a distinction between what the Trustee intends to do with the long-term contracts and what Sam Adams says are his intentions. Doesn't the Trustee have more standing with the court? I doubt if Mr. Adams comments posted here on a second-hand basis would have the standing to override what the Trustee does. But I'm not a lawyer. Without more information, I'm inclined to lodge an opinion with the court objecting to the Trustee's intention to reject ALL of the older prepaid contracts and attach the WSB interview with Sam Adams as indicating a different intention than what the Trustee proposes. I recongize that honoring prepaid contracts extending more than 18 months total (12 paid 6 bonus) might be to much to expect, but at least the paid portion of a prepaid contract should be honored. The language of the Trustee indicates an indifference to the element of Good Will in this business. In spite of the frustration many members have experienced during All Star's decline, there is clearly still a meaningful amount of Good Will associated with the operation, and Sam Adams is in an excellent postion to benefit from it in allowing the members with reasonable prepaid memberships to continue in good standing. After that, I would expect a good rate of renewal even with what will certainly be higher fees than what were paid previously. If the Trustee is granted the ability to reject all of the prepaid contracts as he requests, I think the Good Will will evaporate. There appears to be a distinction between what the Trustee intends to do with the long-term contracts and what Sam Adams says are his intentions. Doesn’t the Trustee have more standing with the court? I doubt if Mr. Adams comments posted here on a second-hand basis would have the standing to override what the Trustee does. But I’m not a lawyer. Without more information, I’m inclined to lodge an opinion with the court objecting to the Trustee’s intention to reject ALL of the older prepaid contracts and attach the WSB interview with Sam Adams as indicating a different intention than what the Trustee proposes. I recongize that honoring prepaid contracts extending more than 18 months total (12 paid 6 bonus) might be to much to expect, but at least the paid portion of a prepaid contract should be honored. The language of the Trustee indicates an indifference to the element of Good Will in this business. In spite of the frustration many members have experienced during All Star’s decline, there is clearly still a meaningful amount of Good Will associated with the operation, and Sam Adams is in an excellent postion to benefit from it in allowing the members with reasonable prepaid memberships to continue in good standing. After that, I would expect a good rate of renewal even with what will certainly be higher fees than what were paid previously. If the Trustee is granted the ability to reject all of the prepaid contracts as he requests, I think the Good Will will evaporate.

]]> By: anne http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981747 anne Tue, 12 Mar 2013 03:52:11 +0000 http://westseattleblog.com/?p=144295#comment-981747 When Epicenter bought the Downtown Allstar last year, they honored pre-paid memberships. Allstar's spin classes are great - I hope my instructors stay! When Epicenter bought the Downtown Allstar last year, they honored pre-paid memberships.

Allstar’s spin classes are great – I hope my instructors stay!

]]> By: Nikka http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981609 Nikka Mon, 11 Mar 2013 22:52:22 +0000 http://westseattleblog.com/?p=144295#comment-981609 Does anyone know what will happen with pre-paid personal training sessions? I pay my membership month to month however purchased the training sessions in bulk for the discount. I'm hoping I don't lose out on this. I agree the facility is in need of a refresh and am looking forward to the upcoming improvments. Does anyone know what will happen with pre-paid personal training sessions? I pay my membership month to month however purchased the training sessions in bulk for the discount. I’m hoping I don’t lose out on this.

I agree the facility is in need of a refresh and am looking forward to the upcoming improvments.

]]> By: Cate http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981569 Cate Mon, 11 Mar 2013 21:15:12 +0000 http://westseattleblog.com/?p=144295#comment-981569 Not sure how the future owner is defining "illegal" contracts. All Star has always given at least 3 months free in return for paying a full year in advance. The new owner must realize that "rejecting" 2100 members is a PR disaster. I am one of those 2100; I will find another club if that happens. Not sure how the future owner is defining “illegal” contracts. All Star has always given at least 3 months free in return for paying a full year in advance. The new owner must realize that “rejecting” 2100 members is a PR disaster. I am one of those 2100; I will find another club if that happens.

]]> By: Ramon http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981449 Ramon Mon, 11 Mar 2013 16:53:53 +0000 http://westseattleblog.com/?p=144295#comment-981449 I will tell you that Sam is a stand-up guy, and the club is going to be a great place to workout when this much needed change finally takes place. This has been a very difficult process for employees and members, but it's going to end up for the good! I will tell you that Sam is a stand-up guy, and the club is going to be a great place to workout when this much needed change finally takes place. This has been a very difficult process for employees and members, but it’s going to end up for the good!

]]> By: WSB http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981129 WSB Mon, 11 Mar 2013 04:39:01 +0000 http://westseattleblog.com/?p=144295#comment-981129 The Sam Adams interview report is up: . http://westseattleblog.com/?p=144366 The Sam Adams interview report is up:
.
http://westseattleblog.com/?p=144366

]]> By: TEV http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981097 TEV Mon, 11 Mar 2013 03:16:25 +0000 http://westseattleblog.com/?p=144295#comment-981097 What some do not know, is this is the three All Star gym Sam Adams has take in over on Bob Padgett behalf. I say Sam is not keeping very good company. It's look like Bob Padgett (as in All Star fitness) will not be paying back about 50 members, that payed him $5,000.00 to keep things going. You can call it Harts, All Star, or that's right it maybe now going to be called West Seattle Athletic What a Joke. Members beware somethings don't change. What some do not know, is this is the three All Star gym Sam Adams has take in over on Bob Padgett behalf. I say Sam is not keeping very good company.
It’s look like Bob Padgett (as in All Star fitness) will not be paying back about 50 members, that payed him $5,000.00 to keep things going.
You can call it Harts, All Star, or that’s right it maybe now going to be called West Seattle Athletic What a Joke. Members beware somethings don’t change.

]]> By: Alkene http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981096 Alkene Mon, 11 Mar 2013 03:16:02 +0000 http://westseattleblog.com/?p=144295#comment-981096 While not an exact parallel, the failed takeover of the shifty Huling Bro.s dealership by Gee Automotive comes to mind. And one can see how well that worked out. The West Seattle community is neither forgetful nor uninformed (in part because of the WSB). While not an exact parallel, the failed takeover of the shifty Huling Bro.s dealership by Gee Automotive comes to mind. And one can see how well that worked out.

The West Seattle community is neither forgetful nor uninformed (in part because of the WSB).

]]> By: DiverLaura http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981085 DiverLaura Mon, 11 Mar 2013 02:58:46 +0000 http://westseattleblog.com/?p=144295#comment-981085 I hope that they take a look at the additional annual $100+ 'capital improvements' (or whatever it was for) fee. I had not experienced that at another club, why not just charge $10 more per month? It seemed a bit odd. In any event, props to WSB for reporting on this! I hope that they take a look at the additional annual $100+ ‘capital improvements’ (or whatever it was for) fee. I had not experienced that at another club, why not just charge $10 more per month? It seemed a bit odd. In any event, props to WSB for reporting on this!

]]> By: James Martin http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981072 James Martin Mon, 11 Mar 2013 02:28:55 +0000 http://westseattleblog.com/?p=144295#comment-981072 Sam Adams, by not honoring some long-term contracts members made with past ownership, will create a pool of angry people in the community. There is little cost to honoring the contracts while customers who feel wronged will spread their ill will, poisoning the beginning of his tenure in the neighborhood. He will never get those customers back. Sam Adams, by not honoring some long-term contracts members made with past ownership, will create a pool of angry people in the community. There is little cost to honoring the contracts while customers who feel wronged will spread their ill will, poisoning the beginning of his tenure in the neighborhood. He will never get those customers back.

]]> By: WSB http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-cancellation-sought-for-2100-prepaid-contracts#comment-981061 WSB Mon, 11 Mar 2013 01:36:47 +0000 http://westseattleblog.com/?p=144295#comment-981061 For anyone checking back - the "conversation with Sam Adams" story is almost done - as I should have expected, some things this afternoon (unrelated) intervened. Will post the URL here as promised when it's up. - TR For anyone checking back – the “conversation with Sam Adams” story is almost done – as I should have expected, some things this afternoon (unrelated) intervened. Will post the URL here as promised when it’s up. – TR

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