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CALL 3: Health Club Closure Leaves Members Sore

Employees Say Business Also Owes Them Money

POSTED: 3:59 p.m. PDT October 2, 2002
UPDATED: 3:06 p.m. PDT October 7, 2002

Imagine driving up to your health club and discovering it's gone out of business. It happened to dozens of gym members in Folsom this week.

New Horyznz

Lisa Carlson was ready to work out at her Folsom gym, New Horyznz, but when she showed up Sunday night, she found the windows covered with newspaper and a note on the door.

"(I had) no indication of this. People were coming in their workout clothes, ready to work out," Carlson said.

"I just signed up a couple of days ago, gave them $120 cash, and look what happened. I don't know what to say. It just makes me really mad," said New Horyznz member Paul Chon.

Gym employees aren't happy about it either, saying New Horyznz owes them and many of their clients money.

"He knew these people and looked them straight in the eye and took these people's money as recent as last week to carry on. And in the middle of the night, (he) closes up and walks away," said aerobics instructor B.K. Cryder.

The California Department of Consumer Affairs says that gym members probably won't get back any money, especially if they paid in advance.

Consumer Affairs officials recommend that people stop their monthly payments if their gym shuts down. If fees were charged to a credit card or deducted from a checking account, they should stop the charges by calling or writing the credit card company or bank. And they can also call the Better Business Bureau or Department of Consumer Affairs.

Before joining a gym, read the contract. Lifetime contracts are illegal in California. Contracts must be renewed every three years. Make sure to get a copy of the signed contract and limit the amount paid in advance.

"This is the third club I have worked for that has closed in the middle of the night, so you begin to see the writing on the wall," Cryder said.

There is no equipment left inside New Horyznz, but there are other offers outside, waiting to take over New Horyznz's old memberships.

The New Horyznz owner said a letter is being sent to all members.

The owner of World Gym in Folsom said he has negotiated a deal with New Horyznz to take over club memberships.

For Department of Consumer Affairs information on health clubs, click here.

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