Eviction hearing next month for West Seattle Athletic Club, which also has filed a separate lawsuit of its own

January 24, 2014 at 4:06 pm | In Allstar Fitness bankruptcy, West Seattle news | 64 Comments

By Tracy Record
West Seattle Blog editor

Routine checks of court files have turned up two new legal actions involving the West Seattle Athletic Club (which took over the former Allstar Fitness location in North Delridge last year) – one in which it’s the defendant, another in which it’s the plaintiff.

First: The club’s landlord H-P Properties has filed an “unlawful detainer” complaint, and what court documents describe as an “eviction hearing” is set for February 11th.

As explained here, this means basically refusal of an order to vacate. According to the court documents, the landlord is owed $386,000 in “back rent and other charges,” including this month; the documents include the lease, which says that after two rent-less months last spring, owner Sam Adams is supposed to be paying $100,000 rent per month right now. The complaint, filed a week and a half ago, includes a copy of a three-day “pay or vacate” notice that was originally dated December 20th.

The complaint is not only against Adams, his company Hollystone Holdings, and the West Seattle Athletic Club, but also names a company called Barratt Leasing. That company, in turn, is being sued by Adams, according to a separate action filed this month, which names Adams as a plaintiff as well as six athletic clubs, including the one in West Seattle. They are suing Barratt Leasing and Allstate Financial Group for breach of contract, accounting, and rescission.

The court documents say Allstate Financial “offers billing services to owners of athletic clubs” and that it was under contract with these clubs, but alleges that Allstate:

“… has failed to make timely and accurate periodic payments to Plaintiffs. On numerous occasions the periodic payments from Allstate Financial to Plaintiffs were late, less than called for under the terms of the agreements between the parties, not wire transferred, made on out-of-state checks that would not clear for several days, or drawn on accounts with insufficient funds. Many Allstate Financial checks to Plaintiffs would be cancelled by Allstate Financial after being deposited by Plaintiffs, which in turn would cause Plaintiffs’ checks to landlords, vendors, and employees to bounce. As a direct and proximate cause of Allstate Financial’s failure to make timely and accurate periodic payments, Plaintiffs were unable to pay required lease, payroll, insurance and utility expenses.

Other allegations made by Adams and his clubs are that Allstate “convinced (them) to enter into subleases for the inclusion of wellness clinics in four clubs” but has not been paying rent for those spaces and currently owes more than $120,000.

As for Barratt, which “is affiliated with and operates in connection with” Allstate, here’s another excerpt from the documents in the lawsuit filed by Adams’ company:

Barratt Leasing finances the purchase of athletic clubs, taking security in the assets of the athletic club, including athletic equipment owned by the clubs. Plaintiffs entered into Lease Agreements with Barratt Leasing to finance the purchase of the clubs.

Barratt Leasing has breached these Lease Agreements, acting in concert with the improper actions and breaches of Allstate Financial. For example, Allstate Financial, Barratt Leasing and Plaintiffs entered into two Memorandum of Agreements in December 2013 which were intended to resolve many of the legal disputes and issues between the parties. Allstate Financial and Barratt Leasing have failed to perform and have materially breached these Agreements. For example, under the first Memorandum of Agreement, Allstate Financial has failed to “continue to provide advances on collected member dues” to assist meeting the obligations of West Seattle Athletic Club and Bethany Village Athletic Club. Rather than advancing these payments, Allstate Financial has taken control of the Bethany Village Athletic Club away from Plaintiffs. Under the second Memorandum of Agreement, Allstate Financial and Barratt Financial have either wholly failed to perform, partially performed, or not performed in a timely manner, the obligations set forth in paragraphs 5.1 through 5.6 of that Agreement.

As a direct and proximate result of these breaches by Allstate Financial and Barratt Leasing, Plaintiffs have suffered several hundreds of thousands of dollars in damages including but not limited to lost membership fees and dues, lost profits, loss of value of the businesses, late fees, damage to business reputation, attorneys’ fees, and other costs.

Unlike the “unlawful detainer” case mentioned atop this story, this is a regular lawsuit and currently does not have a court date set until next year.

Last fall, as noted in this WSB report from November, there were numerous concerns voiced by members, who alleged deteriorating conditions, and some employees who said their checks had bounced, but the ownership posted a message promising improvements.

Less than a month ago, the Tacoma News-Tribune reported that Adams’ company had been evicted from its Lincoln Plaza Athletic Club near Tacoma Mall.

Last time we tried to contact owner Adams for comment about the West Seattle club, he asked that we do so by phone rather than e-mail; so we called his personal number this afternoon to seek comment, but reached only a message saying the mailbox is full, so we’re trying e-mail too, and will add any comment that we receive. (Added: He did call about 20 minutes after we published this, but did not wish to comment.)

Adams took over the former Allstar Fitness in West Seattle in March of last year, after its former owner’s bankruptcy case led to the sale of its assets for $75,000. (Our coverage of the bankruptcy case and what has followed is archived here.)

We are continuing to review the online court files for these cases and will add an update later with anything else we find that might be of note.

ADDED 5:51 PM: Per a request in comments for including documents from the case – for starters, here’s the document setting the February 11th “eviction hearing.” Here is the related “order to show cause.” And finally, the unlawful-detainer complaint.

64 Comments

  1. Interesting. Normally court documents and other legalistic mumbo-jumbo are hard or impossible for me to understand, but those two excerpts you furnished were clear, concise, and surprisingly easy for me to understand.

    .

    “Unlawful detainer” is really an eviction notice, and a posted three-day “pay or vacate” notice is hard to get out of. If it was actually posted December 20th, somebody had to have paid something to keep from being evicted since then.

    Comment by bolo — 5:13 pm January 24, 2014 #

  2. I just called the Athletic Club to ask about this article, since I am member of the club. I was told that it was “crazy talk” and that they have no idea who would publish something saying they were being evicted. Would you be able to attach a copy of the unlawful detainer petition? Thank you!

    Comment by quesadilla — 5:25 pm January 24, 2014 #

  3. Quesa – Please note that this report does not say they are “being evicted.” This report says *an eviction hearing is scheduled.* That hearing could result in eviction, or not, like any eviction hearing. Ostensibly if all parties reach some kind of agreement before then, it might even be called off. For months, people have e-mailed us at every little twist and turn of the story – a report of something happening with one of Mr. Adams’ clubs in another area, a claim of something going on here, etc. – suggesting we need to report every little twist and turn. My response has been consistently, we are watching the court files and IF anything ever turns up involving this club, we will report it, but until and unless that happens, we don’t report rumors, speculation, etc. Now, two legal proceedings HAVE turned up and we are reporting them. As for the documents themselves, I would have included them already except we try not to republish documents that include home addresses and in reading dozens of pages before writing this, I noticed some paperwork with them – those may just have been the return of service documents filed by the process server, though. I’ll check right now and will see what I can add to the end of the story. The court documents are available to anyone who opens an account to download them from King County Superior Court ECR Online, by the way – it is not a media-specific thing – you just have to open an account so that you can buy “pages” in advance, 15 cents each.
    .
    Bolo – I have not seen any documentation yet showing what transpired between 12/20 and now. However, there is at least one indication it remains an active case – a process server’s notation of attempts as recently as 1/20 (this past Monday) to serve documents in person.
    .
    Tracy

    Comment by WSB — 5:46 pm January 24, 2014 #

  4. P.S. Three documents are now uploaded as PDFs and linked at the end of the story, regarding the unlawful-detainer case. We’re headed out on a story so it will be later tonight before I can see about uploading the documents in the other case – Sam Adams’ companies vs. the firms they say owe them money. – TR

    Comment by WSB — 6:08 pm January 24, 2014 #

  5. This story sounded so familiar to one I was reading in my hometown of Hillsboro, OR…what a coincidence! Not sure if the link will work or not.

    http://www.oregonlive.com/business/index.ssf/2013/12/duniway_gym_owners_seek_637899.html

    Comment by Lindsey — 6:19 pm January 24, 2014 #

  6. I heard about the lawsuit for unpaid rent a few weeks ago from a lawyer friend but just like all of the other issues with unpaid utilities, bounced checks and other clubs closing, this gym still stays open and functioning. He seems to want to keep this club open as he pays some things late but he pays. Maybe he will resolve this issue and he won’t be evicted but maybe not.

    Comment by annaeileen — 6:21 pm January 24, 2014 #

  7. if someone owes me that kind of money their stuff is going to be on the street.

    Comment by joel — 6:42 pm January 24, 2014 #

  8. Yikes–I guess we members saw it coming but still a bummer. I wonder how many members will cancel before their credit card gets hit for another $45 + tax on Feb 7th.

    $100K a month is a lot of lease to cover yes. Then again with 5500 members at $45 a month you would think Sam could manage. Unless another on of their clubs is bleeding red ink…

    Comment by supernova72 — 6:57 pm January 24, 2014 #

  9. Sad to see this, but it seems inevitable. I taught there for years, but left after many bounced & late checks without any explanation or apology from the top. The facility is in bad shape & even full classes are getting cancelled daily… Once LA Fitness opens & there’s decent competition, it’ll be the last nail in their coffin.

    Comment by Elizabeth — 7:12 pm January 24, 2014 #

  10. Very sad to see it come to this. I guess I will cancel my membership this weekend. This place has helped me stay fit and healthy for a long time and is convenient for so many reasons; however, it has noticeably declined the past year or two. I don’t know about other fitness facilities in WS and will have to search around.

    Comment by Paul — 7:57 pm January 24, 2014 #

  11. supernova72, He owns or owned about 5 or 6 other clubs in WA and OR. Search on Google and you will read stories of closures, seizures, lawsuits, back taxes, unpaid bills, and unfulfilled contracts at his other gyms. The guy has been paying one credit card with another for way too long.

    Can’t wait for LA fitness, and/or someone else to buy this place out.

    Comment by sgg — 8:29 pm January 24, 2014 #

  12. So new this was going to happen from the minute he bought the gym. Glad I cancelled the minute I did my initial homework on Mr Adams.

    Comment by scout 15 — 9:37 pm January 24, 2014 #

  13. So, to me this sounds like a scam… Either one that involves Allstate, or just good con. Given this history, the writing is on the wall.. If I was a member I would be running out of this facility as fast as I could !!

    Comment by Truth be told — 7:47 am January 25, 2014 #

  14. This is sad for our community although saw it coming. Also it has been really disappointing to see the kids center decline and the core staff there leave. I don’t take my daughter there anymore. It doesn’t feel like it used to there and without going into specifics I am sure other parents know what I mean.

    Comment by Jenfin — 7:58 am January 25, 2014 #

  15. This doesn’t surprise me. It is pretty sad when you see two out of four toilets in the women’s restroom out of order for over five weeks now. When they can’t fix inexpensive items, the writing is on the wall for the demise of this club.

    Comment by mozabo — 10:42 am January 25, 2014 #

  16. I’ve taught swimming at the club since 2006 and obviously have weathered all of the club’s troubles. I will continue to teach lessons and aqua exercise, provided the pool is maintained properly (heated and appropriate chemical balance), until the doors are closed. It has been my pleasure working with our West Seattle kids and adults.

    Comment by barbara — 12:12 pm January 25, 2014 #

  17. Thanks to Barbara, Patricia, and the many other instructors that continue to teach at the club. MUCH APPRECIATED!! You guys make a bad situation manageable.

    Comment by kate — 2:15 pm January 25, 2014 #

  18. They haven’t bothered to fix anything in the facility for months. It’s clearly doomed. I wish I could warn people not to join.

    Comment by bummed — 2:36 pm January 25, 2014 #

  19. And no lifeguard for lap swimming. Towels always running out.

    Comment by ZANA — 5:15 pm January 25, 2014 #

  20. So when does L.A. Fitness open?

    Comment by DW — 5:42 pm January 25, 2014 #

  21. I’m a group X instructor at WSAC and want to say that you cannot rely on the club staff to give you accurate information. They have NO IDEA what’s going on. Every time they issue a late check, a bounced check, or whatever, I’m assured that this is the “last time” and “it’s getting fixed” and “it’s not our fault.” Bullshit. I’ve been encouraging my students to get out and join other gyms while they can. There’s a new Anytime Fitness opening on California street in the next few weeks and they’re going to have a huge sale. Might be a good option.

    Comment by wsacgroupxteacher — 6:08 pm January 25, 2014 #

  22. Ahhhh. I was holding out until LA fitness opened. There really is no alternative in West Seattle for a good gym (and this one isnt even that good). I really dont want to have to drive downtown or Tukwila to go to the gym. PITA

    Comment by Brian — 6:48 pm January 25, 2014 #

  23. Re: LA Fitness: The project it’s in, Spruce (the former “Hole”), will likely be done before year’s end.
    .
    Re: Anytime Fitness, small data point, it’s not a new club – it’s the one moving from the second floor of Charlestown/California.
    .
    TR

    Comment by WSB — 7:34 pm January 25, 2014 #

  24. I wonder what will happen to the WSAC building if it shuts down- just sit empty? That would be a shame. I’m trying to remain optimistic and hope that somebody else comes along and buys it. Seems like it could be a goldmine if run properly. Despite all the problems, the gym parking lot and the classes are always full. I’m there five days a week and have been a member since it opened in November of 2001.

    Comment by kate — 9:12 pm January 25, 2014 #

  25. Hey Barbara! Thanks for continuing to teach swim lessons. You are pretty much all we have left of the club we joined some many years ago. Know that we will follow you wherever you go if you can stay in the WS area. You’ve been an excellent teacher for our kid and his friends.

    Comment by SwimKid — 10:01 pm January 25, 2014 #

  26. What’s the best way to cancel a membership with this club? Phone call? In person? Registered letter? What has been the experience of former members in canceling? Thanks!

    Comment by Charlie — 11:21 am January 26, 2014 #

  27. If anything comes from the court date in a couple weeks to where the land owners can proceed with the eviction then pretty much last year they would be in charge of the club until they sell it or just keep it for themselves. Only difference is that it would be on the land owners, not the courts. And the land owners I do not think are stupid enough to let the doors close, it is to much of a gold mine and would not make them any money period doing so.. Not sure what all the stuff going on with Allstate is about that makes the claims, but did research that person; and he did the same thing with many other gym owners…. Lastly to the instructor who is telling everybody to leave and all the members who just want to you know and complain about every, quit and go elsewhere, stop saying oh well when LA opens, that is well over a year, you have other options here in West Seattle. I look at as this, we have a place to come workout, if that is not good enough then leave. No need to drive up further rumors, what ever happens on Feb 11th will give the answers vs speculations.

    Comment by Smoe — 1:32 pm January 26, 2014 #

  28. We are glad we were able to cancel our membership while you can still get in the front door. After reading about this owner’s other gyms in Oregon recently it sounds like members were still getting charged after they locked the doors.

    Comment by Banto — 7:03 am January 27, 2014 #

  29. Over the last 3 months or so, the number of people at the gym when I’m there has declined, a lot. I’m there after work around 4:30 to 6 and then weekend mornings. Many of the regulars have gone away and the machines/weights are barely 15 to 20% full at any give time, if that.

    I normally would have to wait for the squat rack, bench, and a few other popular machines. Not any more. I’m pretty sure once a member’s old memberships under the former club expire, they are leaving rather than take a change on Sam’s billing practices. I would never give them my credit card info.

    I’m guessing Sam bought the club, got some financing to get it going and then used that money to do some minor cosmetic upgrades and then used most of the money to try and float his other clubs as long as he could and float his own wallet. Clearly that strategy has not worked, at least for the gym.

    The one thing that is clear, if hasn’t been able to pay his staff, rent, utilities and other things so far, what makes anyone think he can now? This club is done as West Seattle Athletic Club. It’s just a matter of time before he is kicked out and the doors are shut. Hopefully, someone will step in and buy it again and fix it up. It “could” be an amazing local club that could easily compete with the upcoming chain club LA Fitness.

    Comment by Brewmeister — 7:32 am January 27, 2014 #

  30. Not sure if everyone is aware but 24 Hour Fitness was one of the original bidders to buy All Star Fitness but they were turned down. Our best answer for all West Seattleites is for 24 Hour Fitness to move out of the terribly small space they are in at Westwood Village, and they need to take over once WSAC gets evicted.

    Comment by Cupajoe — 8:39 am January 27, 2014 #

  31. I have to echo many of the things said by Brewmeister, above. I’m a 12-plus year member, and by far the biggest aggravation has been the sorry state of maintenance, or I should say the lack thereof. Hot tub has been down for close to a year, now. The non-functional urinal in 2nd floor men’s restroom recently moved to the 3rd floor. Broken treadmills, broken stair climbers, broken water fountains, bicycles without pedals, the list goes on. I’m pretty sure they ran out of “Out of Order” signs long ago. Thank goodness the membership *has* dropped off, or I would have to juggle my workout even more to get an at-least partially working cardio machine. Oh yeah – no soap in the showers a few times. That caused a few folks to leave all by itself. I feel sorry for the frontline staff because most of them are doing the best they can, although I don’t know how they can in good conscience continue to sign up new members.

    Unfortunately, there are NO other good options for many of us and I have definitley looked around to find one. The new Anytime might be great when it opens, but not if you want a pool, right? Nothing against the YMCA, but I left there after many years because it got too crowded. I can’t imagine their business has dropped off any with all the All-Star defectors. The last thing I want after work is a lengthy trek to get to my gym. Right now, I’m hanging in there largely because of my awesome class instructor. That goes away and I’m definitely gone. And just for the record, I would never sign anything other than a month-month agreement with any gym. I’ve personally witnessed or heard too many horror stories.

    Comment by peter — 11:01 am January 27, 2014 #

  32. Being in commercial real estate for 25 years…..all this information tells you the new owner is blaming someone else – whom is blaming someone else, which spells shut down. LA Fitness is planned to be open first quarter of 2015. The location is at the corner of Fauntleroy & Alaska aka “the big hole”.

    Comment by Skye Nichols — 3:28 pm January 27, 2014 #

  33. If you do not like it here quit and stop your bi**hing. And I am pretty sure the land ownership group would not just shut the doors, there is to much money to be made here. Same thing happened last year didn’t it? They didn’t shut the doors then. And about the LA Fitness, I will believe it when I see it. It is more then just a gym going in right there, and they have spent how much time so far, and only now have the base foundation and some pillars up? They have spend a few years building apartments straight down the street, yep it will be a long time. Just my 2 cents

    Comment by chiming in — 4:27 pm January 27, 2014 #

  34. @Smoe: You are absolutely correct – we can always vote with our feet if we don’t like it. Unfortunately, there’s no comparable, convenient place to go and some of us are dedicated gym rats, so simply quitting isn’t really a viable option, either. There are worse addictions :)
    I’m very grateful I have this place to work out and I want it to succeed.
    Mostly, I think a lot of us are just sad things have come to this unnecessary state of affairs and how it might impact an important part of our lives.

    Comment by Peter — 9:16 pm January 27, 2014 #

  35. The really sad part is how he took advantage of the young staff working for him. My daughter loved working in the Childcare center at WSAC and she was sad to have to quit working there. However, when all of her paychecks began to bounce, and the replacement check(s) issued to her bounced as well, it made no sense to continue to work for Sam Adams for free. Did you know that everytime you deposit a check and that the check someone else wrote, is NSF-you get charged by your own bank for depositing the bad check? When you are a teenager making min wage and multiple checks are bouncing, it racks up pretty quick! With relentless determination, she was finally paid the money she was owed-but that took many months and lots of effort! Reading this, I am grateful that she was finally paid and no longer has to endure the frustration of dealing with Sam Adams. Everytime a check bounced, he acted like he had no idea that there was a cash flow problem and that his bookkeeper must have used the wrong account… does make you wonder, if the adults working there continue to stay, what account is he paying them from-I know I could not afford to continue to work for a company that does not pay me for the work performed?

    Comment by Kathy — 1:09 pm January 28, 2014 #

  36. I bet Sam Adams’ paycheck doesn’t bounce and it alone probably could pay all the employees whose checks are bouncing. He has plenty of money and I’m sure more than adequate income from many sources. Quit being a typical business man who is walking away with the cash (i.e. your exorbitant paycheck) and put it back into the business so it doesn’t fail. Oh, wait, if it fails you don’t lose anything – just the members and other investors will lose out. Right?

    Comment by adidasguy — 3:20 pm January 28, 2014 #

  37. The gym is in such a convenient location that I’ll keep going there as long as the machines work, and the doors are open. But I’ve been expecting the club to close for several months now. I really hope it stays open. I have no idea where I’ll go if it closes!

    Comment by Amy Thomson — 5:25 pm January 28, 2014 #

  38. Dear members of our club and West Seattle Community.

    To address the concerns around the mentioned eviction notice and court preceding’s we would like to make the following public statement:

    We are currently in negotiations with our Landlord HP properties. HP properties is aware of the financial obstacles we have encountered due to our ongoing concerns with All State Financial Group and Barrett Leasing. The challenges we faced with Allstate financial Group left us trying to operate the business with insufficient capital and thus not able to meet all of our operating expenses such as payroll, utilities and rent in a timely manner. We have now taken the necessary legal course of action to recover lost revenue and other damages occurred from Allstate and Barrett leasing and we are very optimistic that we will come to a positive agreement with HP properties.

    Payroll accounts have been funded adequately, we have begun hiring and training a great new team of employees as well as receiving many positive inquiries from prior employees about coming back to the West Seattle Athletic club. We have also been bringing in vendors to complete the long awaited repairs. We apologize to those of you also affected by the challenges we have incurred and appreciate your patience and patronage. Thank you for sticking with us, we know it has not been easy. Our goal is still to bring this club back to its peak and make it the best fitness club in Seattle. With your help we know we can get there!

    Sincerely
    West Seattle Athletic Club

    Comment by West Seattle Athletic Club — 10:10 am January 29, 2014 #

  39. BRING BACK NIA!!!

    Comment by kate — 1:27 pm January 29, 2014 #

  40. And bring back Jennifer Cepeda. Her classes were the only reason I went so I have canceled my membership.

    Comment by AEL — 2:35 pm January 29, 2014 #

  41. I agree with some comments. Although things may not be getting repair,I really like this gym becasue of the classes and great instructors. Even if LA fitness opens, I doubt the classes would be as good based on my prior membership with them. (same goes for 24 hr fitness). I really hope things work out and it remains open.

    Comment by Andrea — 2:55 pm January 29, 2014 #

  42. Does anyone really believe West Seattle Athletic Clubs response? They are blaming another company for the reason THEY can’t make payroll. Why did THEY buy the club in the first place if they were relying on someone else’s money. Do us all a favor and end it so 24 Hour Fitness can take it over and hire all the old instructors.

    Comment by Cupajoe — 4:26 pm January 29, 2014 #

  43. I cosign cupajoe! I used to attend a noon time Zumba three times a week with awesome instructors… Then it went to two times a week… And Nicole is an excellent instructor but only teaches one noontime class… I canceled my membership based on the lack of good noon time Zumba opportunities!
    Bring back lunchtime Zumba please!!!

    Comment by Mama2papa — 5:15 pm January 29, 2014 #

  44. It would be nice to see a gym that is more environmentally friendly, too- lose the vending machines that sell bottled water, ditch the towel service, stop using crazy harsh chemicals when cleaning (the smell of bleach the other day was so overpowering in the bathroom that I had an asthma attack!), get rid of the fake-y protein powder junk sold in the lobby, and reduce the air conditioning in the locker rooms that are freezing. Since I’m dreaming now, could the cardio machines and stationary bikes power the gym?

    Comment by kate — 7:42 pm January 29, 2014 #

  45. Hmmm, look up case # 132-2-318-661 and 132-2-36756-4 with King County Superior Courts. These tax warrants would confirm rumors that owner changed back accounts for the second time to avoid liens placed on their accounts from state.

    Comment by Annie — 5:10 pm January 30, 2014 #

  46. While I had been a charter member of All-Star Fitness and seen the clubs deteriorate, I had hoped with new ownership the club would improve. The club did a few basic cosmetic changes, some which I thought were really stupid, such as installing all new flat screens tvs– and why did we need to have 2 flat screen tvs in the men’s lockerroom above the lockers? The change over to paper towels upstairs and the continual shortage on towels and empty spray bottles–how difficult are those to maintain and stock up?

    So he can’t pay his employees, owes taxes to the state, can’t manage the club membership payment system, and is getting sued by Seattle Athletic Club for copyright infringement – does this make sense that he should own this club?

    And just what was the bankruptcy court thinking, especially if you consider Mr. Adams’ seeming mismanagement of the actual Oregon clubs (see The Oregonian) or the Everett Hawks football team (Everett Herald).

    Comment by Cal — 1:29 pm February 1, 2014 #

  47. Right or wrong I’m continuing to pay my monthly dues hoping this fitness ship will turn around. The front desk told me that Mr Adams just dropped ~ $35K into materials for improvements and that the ladies restroom stalls are now functional (me be a male so not sure about that).

    I did notice that urinal #3 in the mens is functional (can we celebrate yet?).

    However at my last count of the 22 treadmills upstairs on the 3rd floor 10 were non working. U don’t know that because they’ve run out of “out of order” signs–hah. It’s kind of hit the button and hope the belt moves sort of functional testing.

    I’m just hoping when the pmt is due on the 25 newerish flat screens (that we didn’t need) Best Buy is kind enough to let it slide for another 90 days. I just want the staff to be paid and functional equipment. Don’t bring in the worn out stuff from the closed gyms they had in Portland and Tacoma : )

    Go Hawks!!

    Comment by supernova72 — 8:14 pm February 1, 2014 #

  48. To the members who asked how to cancel (I’m a former gym manager): after canceling as per your written agreement, the best thing you can do is to call your bank and have them cancel your debit card if you have your monthly dues draw coming off of your debit card numbers. This will completely prevent the WSAC from drawing money out of your account. If you put your membership monthly dues draw on a credit card or gave the WSAC your direct bank account numbers, you should cancel as per your written agreement and then contact the Washington State Attorney General’s Office immediately if you continue to get billed after canceling. Hollystone Holdings is Sam Adam’s company that owns and operates the WSAC. All of Mr. Adam’s clubs besides one in Oregon and the WSAC have had former members being billed months after these evictions/shutdowns and/or after canceling their memberships. It would also be wise, if you have the means, to consult with an attorney if you still have an active membership with WSAC. I have seen this type of situation before and it CAN get worse beyond what there is space here to describe.

    Comment by Brad — 2:16 am February 2, 2014 #

  49. So, Sam Adams tells everybody he is straightening out the situation by making the companies responsible for not paying bills held liable. Now we find out Sam Adams is suing himself, Hollystone Holdings. This makes the story even better. Sam Adams owns the West Seattle Athletic Club, and owns the company that manages the West Seattle Athletic Club. So instead of blaming himself for not paying his bills, he is blaming “himself” for not paying his bills!!!

    Comment by cupajoe — 8:25 am February 2, 2014 #

  50. As a personal trainer of many, many clients at many, many gyms, what Sam Adams is trying to get away with here is, literally, criminal. I’ve seen bad gym owners/managers over the years, but this clown takes the winning trophy. I feel very bad for those trainers and staff who are still there, slugging it out for no pay.

    Comment by Joe — 7:38 pm February 2, 2014 #

  51. I suggest current members call in and cancel their membership or change their credit card so WSAC can’t bill them anymore. This is a sinking ship and people need to protect their money!

    Comment by Kelly — 7:53 am February 4, 2014 #

  52. Cupojoe I thinks you a little confused.
    Adams isn’t suing Hollystone – his own company. He is suing his billing company Allstate Financial Group. Read the docs in the links in the article.

    Comment by Annie — 11:32 am February 4, 2014 #

  53. They just charged my account $55 for their annual maintenance fees today. If they get evicted do us customers get that money back? I’ve heard customers at his other clubs were still charged even after the eviction, are we all screwed out of our money or is there something we can do?

    Comment by Kelly — 9:08 am February 6, 2014 #

  54. WSAC is being evicted and going out of buisness. They are selling tons of year long prepaid memberships to a facility that is going out of business. Sam has screwed over his own employees, vendors, tax authorities, and contractors, so members will not get refunds. It is a scam!! Allstate is not responsible for Sam taking all of the money instead of paying his bills, employees, and taxes. The lawsuit is a last ditch effort to put the blame on someone else!! SAM is selling the prepaid memberships and missappropriating funds. Maybe Sam slammed his head a few too many times. Ex-hawk needs to get sacked!!! Ka Kawwwww

    Comment by Concerned Citizen — 4:14 pm February 6, 2014 #

  55. Thanks Annie,

    I think I have all the companies straight now.

    Cupajoe

    Comment by cupajoe — 10:12 am February 7, 2014 #

  56. People have always been able to buy pre-paid if they want. They told me exactly what could happen, how only time is honored not the money portion, and that we will have to wait and see what happens on Tuesday and what is decided in court.. I find it funny how some people on here even after it was explained saying it does not mean they are evicted or will get evicted; which how I read this the reporter made it very clear. So wait to see what happens in the courts on Tuesday, and take it from there.

    Comment by John — 1:09 pm February 7, 2014 #

  57. After reading the comments I feel the need to speak up and warn those who want to give this business a chance. I worked for Sam at WSAC and endured the bounced checks. There was no accountability on his part or from his management team. It seems to me they know exactly what they are doing. When employees asked about their bounced reissue checks they were scolded by Sam for bothering him. This man has no ethics. One of the reasons I left this business besides the bounced checks was because of how I saw them ripping off my community. Heed the advice of Brad and cancel immediately. I know the members well and how dedicated they are to their gym. I also understand the love for the great instructors but please stop believing that this man will come through with his promises. Please don’t wait to cancel. I watched too many people continue to be charged their monthly dues LONG after they cancelled at both WSAC and the Tacoma location. I witnessed old members being threatened with harassment for calling regarding their accounts because they wanted their money returned. Many contractors have not been paid. It is true they opened accounts at different banks. I went to several trying to get my reissued checks cashed. The banks refused. It will not get better. There is a reason he hasn’t changed the sign. It is a sinking ship that surprisingly has stayed afloat for longer than many assumed. Take it from an ex-employee, get out now!

    Comment by ex-employeeWSAC — 3:32 pm February 7, 2014 #

  58. Sounds like ex-employee is a little disgruntled. Rightly so but don’t blame the club management or other management staff. Most have left also but they were the ones who helped get employees paid when SHTF while they too were not getting paid themselves. To be accountable they had to have some level of ability to pay people. Only 2 people control bank accounts in that place and they hold all the cards.

    Comment by D — 5:47 pm February 7, 2014 #

  59. I would like to hear from Allstate and Barrett Leasing…have they responded?

    Comment by Jim Thomas — 12:30 pm February 8, 2014 #

  60. Oh i think that X-employee is referring to the sign they took down a little over a month ago. And it is pretty simple to cancel, I went in said I need to cancel they just asked me why, let me know the process and gave me a copy of the cancel form and I was on my way.

    Comment by john — 12:46 pm February 9, 2014 #

  61. Canceling is not enough. I had tremendous problems canceling this club (when it was Allstar Fitness) under the old owner a few years ago and had to file with the attorney general’s office to get it resolved. But it’s much worse now. Sam Adams has set things up so his system has been billing former members who have canceled a while ago and continuing to debit fees out of their checking accounts and off of their credit cards. My coworker is continuing to get billed as he gave WSAC his checking account numbers. My neighbor only gave them his debit CARD numbers and was able to simply call her bank and have a new card issued. That stopped the illegal, no-longer-authorized withdrawals immediately.

    Comment by Blane — 1:01 am February 10, 2014 #

  62. Any word on the outcome of the hearing today?

    Comment by sb2780 — 1:24 pm February 11, 2014 #

  63. See story just published the exact moment you wrote this comment…

    Comment by WSB — 1:26 pm February 11, 2014 #

  64. I left this silly gym a few months ago when Jennifer, my favorite Zumba instructor, left. I now take her classes at Youngstown Cultural Center, and joined Anytime Fitness (I love that place!). I’m so happy there! The only good thing I can say regarding WSAC is that I had no problem cancelling, which was a surprise to me. I went in person, cancelled and was not charged anymore. Run away now!!!

    Comment by JH — 5:11 pm February 12, 2014 #

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