Allstar Fitness bankruptcy hearing: Judge will approve sale, ask for Padgett investigation

March 22, 2013 at 10:57 am | In Allstar Fitness bankruptcy, West Seattle news | 54 Comments

10:57 AM: We’re in the courtroom of federal bankruptcy judge Karen Overstreet downtown, where she has just announced she will approve the sale of West Seattle’s Allstar Fitness to Sam Adams – after a long and rambling hearing – in which she also said she will ask the US Attorney’s Office to investigate current club owner Bob Padgett for not notifying members of bankruptcy when filed last August, among other things. We’ve been tweeting live; details to come here.

11:19 AM: The hearing has ended. The judge expressed ongoing concern for members getting notice, from hereon out, about their rights, including those whose contracts don’t wind up being assumed by the new ownership, and their rights to file a claim in the Chapter 11 case. She asked the bankruptcy trustee to look into a way to point members to a court website where they could read documents and notices. Trustee Richard Hooper also promised the judge that he will be posting a notice at the club this afternoon to notify members of the sale. We will expand this coverage with play-by-play from the hearing as soon as we’re back at HQ.

ADDED 6:21 PM: The rest of today’s story – through the end of the court hearing, anyway (we’re interested in hearing from anyone who might have seen the new owner at the club today, and/or the promised notice to members – your comments and/or e-mail are appreciated):

Key players, on and facing the bench on the 7th floor of the federal courthouse downtown:

U.S. District Court Judge Karen Overstreet

Lawyers:
Representing the court-appointed trustee, Yousef Arefi-Afshar
Representing the would-be buyer (she said she had “just been retained”)
Representing the club’s landlord

Trustee Richard Hooper

Those in the gallery, as mentioned from the bench, and/or as seen on the witness stand, included:
More than half a dozen people who raised their hands to identify themselves as club members
Sam Adams (mentioned as being there somewhere – though we didn’t see him)

*Note that cameras are not allowed in federal courtrooms; otherwise we would have shot video or at least photos.*

First item of discussion: Errors in documents, particularly the August 2013 date listed as the cutoff for certain contracts being honored – “We don’t believe anyone’s due process has been violated,” says the trustee’s lawyer – and the apparent errors in listing who was supposed to be on the “rejected contracts” list. The lawyer says “lemonade” resulted because it led them to realize the debtor’s records (debtor refers to Allstar ownership) “contained further errors.”

Judge Overstreet got the lawyer to acknowledge that the “rejected contracts” list would be vetted ultimately by date, not necessarily by names on what is now acknowledged to be a list contianing errors.

One hangup, though: The debtor reportedly solicited renewals before filing for Chapter 11, even though the contracts didn’t expire until afterward. One person on this list is in the courtroom. Those are on the rejected contract list, even though they wouldn’t have been if they had waited to pay until the actual expiration date.

Once that was all somewhat straightened out, it came to the matter of the terms of the sale, and the judge being convinced whether to approve it or not.

This is where dollar-sign specifics started coming in.

The landlord’s lawyer said his client was owed about half a million dollars by current club ownership – including three months without rent being paid, at $135,000 a month. The lawyer reiterated their interest in a “viable tenant.” To a suggestion that the sale would benefit no one but the landlord, he countered that the remaining members would benefit by “having a facility they can go to, with the buyer upgrading it … I presume the membership lives in West Seattle – there’s apparently a major fitness club going in, but it’s going to be a while.” (That was presumably a reference to LA Fitness, the health-club chain that will be the anchor tenant for Spruce, the development set for “The Hole,” expected to start construction sometime soon – its developer hasn’t answered our recent queries.)

Judge Overstreet, who presided snappily throughout with occasional wit, said, “And the alternative is, I say no, and we close the club.”

That was reiterated throughout – this deal may not be great for all the current members, but, the contention was, it beat closing the club and leaving all members with nowhere to go. Also reiterated by the judge – she had asked Allstar owner Bob Padgett at the time of the filing last summer to “give notice to all members of this club that bankruptcy had been filed – he did not.”

(The case was filed on August 27th. We didn’t learn about it until October, at which time we published this story, quoting club management as saying a letter would be sent to members.)

The lack of notice was cited as a reason why GRE 509 Olive LLC, a downtown interest with some involvement with both the debtor and Adams, in separate transactions, weighed in at the last minute before the hearing on the prospective sale. Their lawyer said that some issues mattered more to them than others, but overall, “I don’t want it said in two months that we hid in the weeds and didn’t say anything.” The trustee’s lawyer Arefi-Afshar said he considered that company’s claims a “red herring.” At that point, the 509 Olive also brought up another issue from their filing, whether Adams can live up to his promises regarding renovating and operating the West Seattle club.

“He’s here and he can testify,” offered the trustee’s side.

The judge did not take them up on that offer. She did grill Hooper on how the $75,000 purchase price for club assets “squares with the valuation.” Hooper said it was the best they could do, and that they needed to do something fast – “we barely have the cash to keep the doors open and pay the salaries.”

That’s when several members took the opportunity to testify. The first took issue with Arefi-Afshar’s characterization of the erroneous list/date turning “lemons into lemonade” – in her view, the notice and its errors “cut off further interest” for too many people who didn’t “believe their rights are affected.”

“But more (contracts) will be honored” than originally believed, the judge countered, subsequently saying again that she is not pleased outgoing owner Padgett didn’t notify members, describing herself even as being in “a snit.”

The testifying member said she had belonged to the club since the start and thinks it’s undervalued with a $75,000 sale price, suggesting there were members who might have offered at least that much, but hadn’t heard about a search for a buyer. She quoted Adams’s March 10th WSB interview in which he said he expected to honor 99 percent of even the contracts listed as “rejected” in the court documents, and she thought the documents should be revised to explicitly say that.

The next member to speak was one of the “investors” from whom the debtor had allegedly solicited “investments,” with part of the sum ostensibly to go toward lifetime/long-term memberships. His contract, he said, is supposed to go through September 2018, and he considers it “disgraceful” that he didn’t get much notice. “I want him to honor the people who have supported the club.”

The next person to speak also described herself as upset about the lack of notice: “If I knew they were in bankruptcy, I would never have signed a long-term contract.” She said she hadn’t heard about it until late February. She thought a folder of documents about the case at the club’s front desk would have been helpful. Would an accurate list of affected members be available? she wondered. Trustee Hooper said “the accuracy of the records at the club is questionable,” and noted that the 7,000-plus people described as members are actually “everybody on the register of the club,” including some “inactive.”

He next had to answer some pointed questions about how the search for a buyer was conducted and how he wound up with this proposal. Six people toured the facility, four dealing directly with the landlord, Hooper said, and Adams’ offer was best. But time was short, he said, and they did not “advertise.”

Subsequently explaining the “investor” members whose contracts would not be honored, Hooper went into a quick summary of how, he said, owner Bob Padgett – “I’ve got my eye on Mr. Padgett,” the judge interjected at that point – had requested $5,000 investments that supposedly would include $3,000 in membership credits. But those, Hooper contended, were deals that were made directly with Padgett, not with West Seattle Fitness, the entity that is now going through Chapter 11.

Adams’ lawyer said he needed time to look at the pre-existing contracts “so he can’t really speak to what the obligations are,” but he will make it “a priority. … He’s a businessman, he needs to have dues coming in,” she said, “he can’t afford to alienate 2,100 people.”

Observed the judge, “They seem a little alienated at this point already.”

The 503 Olive lawyer asked whether the landlord had rejected other potentially qualified buyers. The landlord’s lawyer, accusing the other lawyer of coming into the case “at the midnight hour,” suggested the “members don’t appreciate this because they don’t know – the landlord is owed $2.5 million .. until the trustee was appointed, he hadn’t been paid since October, and still has seen nothing for January through March … what the landlord is trying to do is get a viable tenant that pays a fair-market value. What Adams is going to pay is less than what the original lease called for – with two months of free rent to get up and running. If this doesn’t go through, the place goes dark, and we get the place back in two months in bad condition. Mr. Adams is committed to renovating the facility, and that’s important to the West Seattle area as well.”

At that point, Judge Overstreet had heard enough: “I’ll be approving the sale, and here’s why.” Before going too deeply into “why,” though, she said, “I have heard enough already about activities by Mr. Padgett that I will personally prepare a letter and ask the US Attorney’s Office to investigate what has been done … When we have a (Chapter 11 filing) we expect the (filers) to honor commitments” (to what they are supposed to do to make notifications, etc.).

“What concerns me the most is that the membership has the opportunity to continue to go to a club in their neighborhood.”

She warned Adams directly, “You have heard what people (testifying) had to say – they are not happy. I can’t order you to honor (pre-existing) contracts. … I think the trustee has provided sufficient evidence that this is in the best interest of the estate.”

This is nowhere near the end of the Chapter 11 case itself, but regarding the club, it was time to move on, and the remainder of the discussion had to do mostly with paperwork and timelines. First the judge said she would sign the order of sale Monday; the trustee said the bill of sale was prepared and ready to go, so then she said that if it got to her in time, she could sign it today.

(Here’s the order as entered into the online record at 3:30 pm today – not described as having been signed by the judge yet, though.)

Adams would be going to the club today “to talk to the staff,” the judge was told, and then a discussion ensued about improving communication to members – even if it meant getting relevant documents onto the court’s website and directing members there. There was a promise in the short run that a notice to members would be posted at the club this afternoon.

One last loose end was tied up – instead of the April 5th hearing on a motion to limit the need for sending future notices to all members, each motion that comes to the court can be discussed individually regarding what kind of notice is appropriate.

54 Comments

  1. Yee-Haw, investigate Padgett!

    Comment by Eddie — 11:03 am March 22, 2013 #

  2. I cannot express how appreciative I am of all of the work you have put into keeping us informed. I was just following your live tweets – thank you so much for your news coverage! Yeah to investigating Bob!

    Comment by Anna Eileen — 11:12 am March 22, 2013 #

  3. THANK YOU WSB for all the detailed Tweets. The tweets on 509 Olive – do they mean the former ALLstar club in the Medical Dental blg that Sam Adams took over? It’s not going bankrupt now is it?

    Comment by anne — 11:27 am March 22, 2013 #

  4. I too want to thank the WSB for its coverage over this issue. You are my source. I am so very appreciative.

    Just a note of a few observations from my trip to the gym this morning. I was in the women’s locker room. There were no plastic bags for wet swimwear. All of the hair dryers have disappeared but one. The black mats on the floor are dwindling. I walked out of the locker room & noticed that the clock on the wall was gone.

    The question I need to have answered now is the status of my membership. Since my name is on the “list” will I be able to use the facility tomorrow? Now that the sale has been authorized is my ability to use the facility now null & void? I would love a “simple” straight forward answer to this question.

    Once again thank you so much TR!

    Comment by Irish — 11:27 am March 22, 2013 #

  5. Thanks for all the work you have put into this, and especially the tweets from court today. Padgett definitely needs to be investigated.

    Comment by Cal — 11:32 am March 22, 2013 #

  6. Anne – I hesitate to attempt to fully interpret the 509 Olive situation – I linked to the documents in yesterday’s report. I do not BELIEVE this has anything to do with that club’s current operations. Sam Adams had told us he had split with his former business partner, who is operating that downtown club and not involved in this. If anyone is a member there, they should ask management.
    .
    Irish – Sam Adams, the trustee says, is supposed to be at the club this afternoon. The trustee promised he would post a clear notice. I hope that we will either get a copy of it from him, or from someone scanning it. Adams had told us in the March 10th interview that they would need a few days to get into the books and start notifying people where they stand. – TR

    Comment by WSB — 11:32 am March 22, 2013 #

  7. I know things are going to get better! I apologize for the missing things in the women’s locker room, but many items have been stolen in the last few months. I’m not sure why someone took the black mats, but as has been noted several times, there is a lot of work to do. The staff that is left, along with the new owners, are going to be committed to doing the right thing for the West Seattle members, community, and staff. Thanks to the members who have supported us and stuck it out. This will be a great gym again!!

    Comment by Ramon — 11:39 am March 22, 2013 #

  8. I attended the hearing. The testimony of the elderly who have lost thousands of dollars was heartbreaking, as was the testimony of members who received no or inadequate notice of this bankruptcy and now one of the 2,100 former members out in the cold. The only persons profiting financially from this sale are the attorneys, Trustees, and the landlord– a testament to bankruptcy rules which favor The System.
    The Judge did say that IF you paid your membership money BEFORE 8/27/12 but your contract did not renew or start AFTER 8/27/13, you may assert a claim that you are a POsT PETITION member and your contract should be honored.

    Comment by Cynaur — 11:40 am March 22, 2013 #

  9. Thanks, WSB, for the coverage and the live tweets. Much appreciated.

    Also, just caught up on the late filing to correct the “typo.” That was a pretty critical word to mess up. I’m on the list but maybe I shouldn’t be. Either way, I hope Mr. Adams lives up to his word. I’m looking forward to hearing when we’ll know what status our memberships are in, regardless of type or when we renewed. What a mess!

    Comment by Jenny — 11:43 am March 22, 2013 #

  10. I’m having a ton of sympathetic thoughts here. As a former member I’m thinking about all the billing and logistical troubles I had there. I kept thinking to myself, this isn’t rocket science- why am I wasting brainpower on this subject. I’m at Crossfit West Seattle now and I’ll say that life throws challenges at you wherever you are but at least the owners and staff of CFWS step up to plate and over-recover for any issue that comes up. I think the difference between the two has to do with goals. You can choose community health and wellness or a company who only cares about getting your money.

    Comment by Cole — 11:46 am March 22, 2013 #

  11. @Ramon: Do I still have to bring my own fan to classes? We’re pleased to see the sale go through, and hope that most existing memberships are allowed. Love to keep the AllStar community together.

    Comment by Irukandji — 11:53 am March 22, 2013 #

  12. Yea! Glad to hear it’s approved. Let’s give the new owner time to review the books. It sounds like he wants to do the right thing by members, and like the judge considered them in her ruling. Definitely need to keep our eyes on it, though.

    Comment by Nancy F. — 12:11 pm March 22, 2013 #

  13. WSB – thanks for keeping us posted. Wish I could have been there in person, but day jobs get in the way. Anyway to learn when the new list of memberships to be terminated will be filed, and to create a link to the PDF of the filing? That would be much appreciated. What a disaster all around.

    Comment by Kerissa — 12:17 pm March 22, 2013 #

  14. I just got the letter stating that all contracts prior to August 27, 2012 will be terminated. I don’t care what lip service he gives, he clearly told the court “The buyer is not prepared and does not wish to assume any Club membership and personal training contracts and agreements entered into by seller prior to August 27,2012″.
    That is pretty clear. Lots of memberships – even 1 year memberships with a few months remaining – will be terminated.

    I thing they are going to tell me to go to a different gym.

    Comment by P Lajko — 1:36 pm March 22, 2013 #

  15. Kerissa – I will link any additional docs here, of course. I just got back (had to sit in the court for a while extra, they were hearing a fascinating-sounding case about “wrongful foreclosure” and a family whose lives were turned upside down, unrelated to the case I came for, of course) and have not checked the file yet, will also be writing up the promised play-by-play – there was drama, there was humor, there was anger.

    Comment by WSB — 1:47 pm March 22, 2013 #

  16. As of today at 2:30pm, they are still signing up people online with a special offer that expires on 3/25/13. This seems wrong to me, especially if the club is going to be sold soon.

    Comment by 20somethingguy — 2:35 pm March 22, 2013 #

  17. 29somethingguy, something similar happened once in an apt. complex I lived in – they told us we’d be asked to leave in the next 9 months due to a condo conversion (buy or leave, essentially), and yet they still had people coming in to look at and rent the apartments, without disclosing that they were going to be there less than a year. When I saw people at the rental office, I’d tell them what was happening. It does seem wrong to hold back vital info like that.

    Comment by Sue — 2:53 pm March 22, 2013 #

  18. @ Ramon. Really? You think someone actually intentionally rolled up the heavy, smelly, wet, old black mats in the women’s locker room and walked out the door without being noticed by someone at the front desk? Could that also be what happened to the scale in the women’s locker room?

    Comment by m — 2:58 pm March 22, 2013 #

  19. Hi all! @ Irish, yes! Please come in and use your membership. I know it is difficult to do, but please give the new owners time to check the details out. I understand that you will only know the right thing will be done when it happens, but I truly believe we will do the right thing.

    @ lrukandji- We don’t ever want members to have to bring personal equipment to their gym ever again! Of course, you will have to give us some time to get was is needed. As you all know, we have a lot to do. I love this club though, and I am so glad it will improve for us all.

    @ Plajko- All I can say is give us the opportunity to show you the right thing will be done. Again, I understand until you find out for sure, it can seem like lip service. I am very sympathetic to what you all have gone through as members because I have experienced it right along with you. Feel free to give me a call at the club if you have any questions I can answer.

    Comment by Ramon — 3:02 pm March 22, 2013 #

  20. The only reason we have been members is for the pool. Thy Y’s pool is too small and that facility is way over-crowded (forget Swest, the hours for lap and family swim are a joke). If the Allstar pool continues to be the cesspool it has been these last years, along with the showers (family, too), the sauna, hot tub, and steam room there is no reason to stay members—we’ve been month to month for close on 10 yrs, which is a real chunk of change to have paid for some high roller’s misdeeds.

    Comment by Carraig na Splinkeen — 3:40 pm March 22, 2013 #

  21. Ramon thank you for your response. I appreciate it. I only hope your words have some “authority”. What is your position with the club?

    M, I appreciate you chiming in with your comments regarding the disappearing items. Ramon I must say these items seem to have disappeared within the week. Today was the first day of my return since receiving the “letter”. I was going 3 times a week.

    I have had issues (re the pool) that I have taken issue with & have gotten no response. At least our concerns now “seem” to have a voice. I am hoping this type of conversation continues. I look for the bright side of things. Both sides need to participate in the “conversation”.

    Comment by Irish — 3:41 pm March 22, 2013 #

  22. I agree with you Irish, and I can assure you that I will work with you all getting through this. I am the General Manager of the club. :)

    Comment by Ramon — 4:24 pm March 22, 2013 #

  23. Ramon- your Pollyanna enthusiasm is somewhat endearing, but frustrating as well. How can “the right” thing be done at this point? 1/3 of your prepaid members just lost more than $1.5 million of their money to your club. Some of these people were senior citizens on fixed incomes. Many of these fell for solicitations Made directly by YOU to “sign up Before their membership expires and get six free months!” when you knew the club was filing for bankruptcy. You sold us a bag of goods, and now you’re telling us how “right” you’re going to make it when the new owner specifically terminated our paid memberships as a CONDITIOn of his whopping $75k purchase today. So please, tell us again how “right” you’re going to make it for the very longterm and prepaid customers who have been screwed. Did you want to sell us a bridge in Brooklyn, too? Maybe “reInstate” us for hundreds of more dollars? You have lost the trust in this community. It took a very long time to build, and only two weeks to completely trash. Maybe if you offer “day to day” contracts you can still pull in the only thing of value to Allstar: $$$.

    Comment by Cynaur — 4:26 pm March 22, 2013 #

  24. Given all of the press on this club, I have to say that I would bet that there are many west seattle people who will not want to sign up for this facility for some time, so that they can see proof of work to the facility, proof that contracts are honored, and proof that it will be a better place. I am SO glad I changed my mind for a much smaller facility in West Seattle.

    Comment by coffee — 4:31 pm March 22, 2013 #

  25. I’m about to give my current membership card a functional test at the front desk. I renewed 3/18/2012 as part of the “free” 6 month deal so technically I could be on the SOL list.

    If my card does not “beep” I’ll let the WSB forum know on this comment string.

    It worked 230 times in 2012 and I want to keep that string going : ) Cheers.

    Comment by supernova72 — 5:07 pm March 22, 2013 #

  26. Thank you TR. That is great news for my wife who enjoys All-Star Fitness so very much.

    Even if she did not get a penny back, she would have gotten her money’s worth.

    Escaping me for a couple of hours a day is worth much, to her. Haha

    She loves that place.

    Comment by Whatever — 5:10 pm March 22, 2013 #

  27. This has been a hard time for all at Allstar. One thing I have to say is the instructors are amazing people. I have been taking classes for 8 years and even in these hard times the instructors are giving us thier “as usual enthusiasm.” Laura S, Kim, Laura B, Pricilla and all are amazing, inspriring, people. I am not sure what I am going to do, but I would like to see where this all goes. I don’t want to give up on a club with the best group exercise classes in Seattle. I feel sorry for these instructors and hope they all keep thier jobs, even if class sizes drop due to the turmoil.

    Comment by lifelongWS — 6:10 pm March 22, 2013 #

  28. Just a note – I have finished the rest of the court hearing narrative and added it above – TR

    Comment by WSB — 6:25 pm March 22, 2013 #

  29. To Cynaur- You can call it Pollyanna, but I can only speak to what is in my control. I didn’t sell any bags of goods, but time will show what happens to these paid memberships. I’m not sure going back and forth with you on the blog is the best venue, but I understand everyone’s frustration. So feel free to call my cell if you’d like me to clarify anything for you. You can get it at the club.

    @m – Believe it or not, they were stolen. We were just as shocked as you are. The club has been hit after hours several times, so they were possibly not having to just go by the front desk. The scale broke and will be replaced by the new ownership. Sorry about the inconvenience.

    Comment by Ramon — 7:03 pm March 22, 2013 #

  30. Just please don’t mess with Stacy Munn or any of her classes. PS…and please get new mats for classes in studio 2.

    Comment by Amy — 7:51 pm March 22, 2013 #

  31. TR thanks for all the coverage.

    I was at the club this afternoon around 2:30 and did not see any notice either at the front desk or posted in the various places they have been notices, i.e. locker room and third floor bulletin board.

    Comment by Cal — 7:52 pm March 22, 2013 #

  32. Thank you WSB for being the only voice of facts in this mess. What a soap opera. I guess we are waiting to see if a ‘good” man with community interests bought this. I am crossing my fingers.

    Comment by BH — 8:05 pm March 22, 2013 #

  33. Wow. Powerful reporting, WSB. You’re real pros. I feel sorry for someone, but I’m not yet sure who.

    Comment by Chris W — 10:06 pm March 22, 2013 #

  34. Thank you so much to WSB for the reporting on all this! Definitely appreciate that, especially given the lack of transparency from All-Star and its (former) management/owners.

    Question I have on behalf of a couple investors: what are our options, especially if we are on the “rejected contracts” list? Thanks in advance for anyone who an offer some assistance here.

    Comment by Burned Investors — 11:18 pm March 22, 2013 #

  35. @Ramon – how about posting your cell phone so those of us that have questions can call you? I’m one of those “on the list” who purchased a 2 year contract that still theoretically has another 6 months or so on it – will my contract be honored or not? I can’t imagine why it wouldn’t be in his best interest to NOT honor it – if he honors it, he keeps a customer. If he doesn’t he loses a customer and a family will bad mouth the $#%#@ every chance they get… and of course we won’t even consider re-joining. Ever.

    Comment by Jerry Hoffmeister — 11:31 pm March 22, 2013 #

  36. I agree with lifelongws. I take the same classes from Laura B, Kim, Laura S, and Pricilla (sorry don’t know about Stacey, don’t do mornings but heard she is awesome). Don’t mess with the instructors!!!! They are the best in Seattle and if they go, many members will too. Pay them what they are worth and treat them right. They are a HUGE pull to this club and without them you will fail.

    Comment by alkigirl — 1:23 am March 23, 2013 #

  37. Like other posters here, I go for the pool as the size and hours for lap swim are not available at the Y or SW. I have contacted Ramon and past mgrs with little or no response. I’m thankful that I did not renew my membership in Dec with the long term contract when offered. I am now month to month. The cost is more, but it feels safer. If, and based on past performance that’s a big IF, the pool and women’s locker room can be brought up to a cleaner standard and maintained, staffed and rules enforced properly, I will remain a member. If not, I will go elsewhere.

    Comment by Rarejem — 6:35 am March 23, 2013 #

  38. @Ramon – I have emailed you multiple times over the last few months with questions about the club and have never received a response. Why is a phone call going to be any different? I for one am glad the Mr. Adams is taking over and am happy to give him a chance.

    Comment by Gatewood Guy — 7:45 am March 23, 2013 #

  39. It is completely unfair to all the hard working staff to use this blog as a time to bash Ramon or the quality of the club on him. This mess is not the staffs fault and most all of them were left in the dark about this entire procedure. Everyone that works at the club is human, just like you and with my understandings, hate the conditions of the club just like the rest of the world… So please be kind. Time will help fix that gym and it can only be fixed one day at a time. This drama was not created by any current staff- and the gym has had no funds for months to fix/replace anything so please, give all those hard working employees a break. They dont need any added stress… they all are already trying to tread above water. I talk to the trainers, front desk and group x instructors alot when I work out and everyone is stressed and wanting change… Not just the members. so again, lets all try and be kind, positive, and supportive. If nothing changes in months to come— then you have reason to be angry!

    Comment by Sympathy — 7:50 am March 23, 2013 #

  40. What if you are just sick of the club and lack of response via email/phone regarding other issues and want to cancel your contract? I think we signed up in either October or November. My husband and I got sucked into signing up for the VIP memberships. We are both paying 80ish dollars a month. The VIP includes tanning and well the tanning beds barely even work! It’s frustrating because for weeks I kept calling asking to speak to a manager to see if we could switch to a regular membership seein how the tanning beds were not working well and I was constantly told a manager is not available but email Ramon. Guess what? I did and no response EVER!!! Why would I want to be apart of a club like tht? Owners may have changed, but Ramon is on here acting like he will do whatever he can to make members happy well you can start with answering your emails.

    Comment by Frustrated — 9:18 am March 23, 2013 #

  41. My wife checked in at the front desk this morning (Saturday)as ususal. We are listed on the “reject” contract list, having signed up in March 2012 for a prepaid membership with six bonus months. We’ll see how it goes from here.

    Comment by JTB — 10:23 am March 23, 2013 #

  42. @Ramon – please post your cell phone so we can call you.

    Comment by Jerry Hoffmeister — 10:46 am March 23, 2013 #

  43. Just returned from Allstar and had a great workout. Sad that my favorite trainers will be gone but I know where to find them. My $800 a month is going out the door which is a lot more that the $400 I may lose if Sam does not honor my remaining membership.

    I was told that Sam Adams has posted messages on this blog but I have yet to see them. Perhaps WSB can repost any comments from Sam.

    Ramon – I personally spoke to you when I received a letter about renewing before my membership expired. You knew about the bankruptcy and did not share this information. I hold you just as responsible as the previous owner.

    Comment by Still Member? — 11:38 am March 23, 2013 #

  44. Allstar update – Thanks to a member for sending us a photo of what’s posted at the club. The member said they were not making copies available to members, at least at the time, because of a paper shortage, or something. If the image is clear enough I’ll post it separately – otherwise I’ll do my best to transcribe it; we’re out and about covering things for another couple hours so transcription time is limited till then – TR

    Comment by WSB — 12:18 pm March 23, 2013 #

  45. I’m gonna give Sam a chance. I assume no current Staff intentionally lied or ripped off any Members. Hopefully bigger and brighter things for all. I feel bad that so many lost money on the investment deal and hope that gets resolved. I read the offer and wanted no part of it, luckily. Thanks for the reporting, etc.

    Comment by Matt — 5:24 pm March 23, 2013 #

  46. I’m on “The List” and checked in at the front desk today without any problem. Keeping my fingers crossed….

    Comment by kate — 6:38 pm March 23, 2013 #

  47. My card worked yesterday as well and I’m on the reject list (March 2012 contract start). I”m told Monday could be “the day” for a lot of changes like re-hiring staff that got termination letters. The last All Star paycheck will be through 3/24 but they all got paid which was nice to hear.

    But it was nice to hear the “beep” yesterday at the front desk. Cheers.

    Comment by supernova72 — 7:34 pm March 23, 2013 #

  48. Here’s our update with the notice posted at the club – specifically addressing where memberships stand (for now)
    .
    http://westseattleblog.com/2013/03/allstar-fitness-bankruptcy-whats-posted-at-the-club

    Comment by WSB — 8:00 pm March 23, 2013 #

  49. The club wasn’t open at 8:45 AM on Sunday. No notices were posted on the front door.

    Comment by JTB — 8:57 am March 24, 2013 #

  50. The club is open today. I called and they said they’re open until 8PM. Every now and then they’re late opening on Sunday. Hopefully, with all the changes to come late openings will be a thing of the past.

    Comment by kate — 9:09 am March 24, 2013 #

  51. Thanks, Kate. I was just getting ready to make phone calls because several people e-mailed us – TR

    Comment by WSB — 9:32 am March 24, 2013 #

  52. Hi everyone,

    I will have a new e-mail, and it will be much better for responding. My Allstar e-mail would get over a thousand junk mails in just a weekends time. I never just don’t reply to an e-mail if I get it. I apologize if I’ve missed several of yours. I am not posting my cell phone on this blog, so please call the club. It is my personal cell phone. I will be happy to speak to you by calling the club and giving your name. Thanks.

    Comment by Ramon — 11:27 am March 25, 2013 #

  53. I understand some people might be upset that they paid a pile a money to Bob Padgett that he took and spent, but losing money in a bankruptcy is (or seems like) something that happens to everyone these days.
    .
    The new owner will lose money on each and every such contract he honors, which as has been pointed out is about 30% of the entire membership. That’s a considerable cost to Mr. Adams.
    .
    And knowing that he’s already pledged to honor about 95% of those revenue-sucking (to Adams) contracts, no one should be harassing Ramon for his personal cell phone number — people should be thanking him.

    Comment by Mel — 7:01 pm March 26, 2013 #

  54. I beg to differ – if he honors contracts, he keeps customers who will pay in the future when their current contracts run out. If he doesn’t honor them, it’s very unlikely they’ll become customers in the future and will likely bitch about the club every chance they get…

    Comment by Jerry Hoffmeister — 11:07 pm March 28, 2013 #

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