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Concord
 
AG bureau looks into gym closings
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April 13, 2008 - 12:00 am

The attorney general's consumer protection bureau is reviewing complaints against Curves For Women gyms in Concord and Penacook, which closed last month without notice and without refunds for members who already paid membership fees.

The Curves franchises closed during the first week in March, displacing about 400 women who worked out at the two locations, according to owners of other Curves gyms who have taken on some of the members. The memberships are transferable to any other Curves location, but compensation was not offered to women who decided not to move to a new gym.

The attorney general's office received four complaints in March and April against Atasal Enterprises LLC - owned by Janet Lasata of Gilmanton - which was doing business as Curves For Women in Concord and Penacook.

The nature of the complaints were "signing up for membership and having the business close and not getting their complete membership services," said Senior Assistant Attorney General Lauren Noether. One consumer had transferred to another Curves location, but three wanted a membership refund, she added.

Noether said the office never confirms or denies any ongoing investigation regarding consumer protection complaints. On the department's website, the complaints are listed as "open - in progress," which Noether said can have a number of meanings, including that the department is reviewing the complaints and trying to understand them or is mediating a case with a business.

Atasal Enterprises was listed as "not in good standing" by the secretary of state's corporation division, which means the company failed to file its annual report by the April 1 deadline. Lasata did not return a phone message yesterday seeking comment.

Noether said state law requires health clubs and gyms to register with the attorney general's office and post a surety bond, which can be used to compensate people who have pre-paid membership fees if a gym closes without notice. There can be exemptions to the bond requirement, and Noether said she did not know whether the Curves gyms in Concord and Penacook were registered or how much money they posted. The information was not immediately available.

"Most (gyms) who take pre-pays, it's going to be required that there's a bond," Noether said. "Just because of the situation that health clubs close, and then people are left having paid for something they're not getting."

Lisa Jackson, a spokeswoman for Curves International, said the company has 10,000 franchises around the world and does not usually know why certain locations close. She did not know the details of the Curves closings near Concord.

Jackson reiterated that Curves International allows members to automatically transfer their membership to the next most convenient Curves location. If a member decided not to make the switch, she could cancel her membership before her next monthly payment is deducted, Jackson said.

"We're not going to take your money if there's no place for you to go exercise," she said.

Although some gyms allow members to pay one annual fee, Jackson said, most Curves members have a monthly fee automatically withdrawn from their checking accounts. If a member paid an annual fee, she should speak with the former owner of the closed gym about a refund, Jackson said.

"If someone for some odd reason fell through the cracks, for sure, let us know and we would take care of that," she said.

Owners of other Curves franchises near Concord are trying to let the displaced women know there is still a place for them to go.

"Other owners who are still open are willing, obviously, to help these people," said Christine Haskell, who recently bought the Curves franchise in Bow. "Monetarily we really can't, but we can certainly incur the cost of memberships that are already paid and give them a place to work out."



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