Gold’s Gym in E.G. reopens, day after judge shuts it down

GOLD'S GYM is back open, a day after a Superior Court judge ordered it closed. / COURTESY YELP
GOLD'S GYM is back open, a day after a Superior Court judge ordered it closed. / COURTESY YELP

(Updated 2:47 p.m.)
EAST GREENWICH – Gold’s Gym is back open, a day after a Superior Court judge ordered it closed, and it has until the end of January to either vacate the premises or find a new owner, according to a court order released Wednesday.
The gym, operated by Sally Fitness Inc., at 1000 Division St., was abruptly closed Tuesday by Judge Brian P. Stern over concerns that it was insolvent and unable to meet its obligations.
Sally Fitness’ stockholders, Barry H. Field, Michael J. Field and Marla E. Director, petitioned the court on Dec. 11 for the appointment of a receiver. Stern appointed Theodore Orson as temporary receiver.
Another court hearing was held Wednesday morning.
A consent order released by the court said that rent and tax expenses will be waived from Dec. 11 to Jan. 31, and that the receiver also must give to the landlord, East Greenwich Square LLC, a budget covering the waiver period. Expenses in the budget must be consistent with historical expenses of the tenant at the leased premises, the order states.
Orson, in a phone interview, said the hope and expectation is that a buyer for the gym will be found by the end of January, and the gym will remain operational. He said the main problem was that the gym was behind on its rent by approximately two months, declining to put a dollar figure on the debt.
A hearing for a permanent receiver will be held Jan. 11, Orson said.

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