New life, new digs for women's gym
By JENNIFER HUFFMAN, Register Business Writer
More than 1,500 local Lady of America gym members were locked out earlier this month, when the south Napa gym abruptly closed. Six months behind in rent, franchise owner Laura Dayton was subsequently removed as owner of the facility at River Park Shopping Center.
Today, the gym has a new lease on life. A new franchise owner is taking over, and the fitness center is moving to a new location.
Lady of America Franchise Corporation announced the gym will reopen at 1850 Soscol Avenue, next to Wal-Mart and at the site of the former La Cancha health club.
Matt Kathol, co-owner of two local gyms named FitFirst, has signed a letter of intent to become the new Lady of America franchisee.
"It's an awesome deal," said Kathol, who will co-own the gym with business partner Kim Rasmusen. "(Lady of America) made (the franchise) very attractive to us."
"The exciting part is that members will get a brand new, state-of-the-art facility that I think will be very, very inviting to them and managed by highly-trained, successful, experienced staff."
Lady of America Franchise Corporation spokeswoman Jill Cook did not name Kathol specifically, but said the corporation "is working with a potential franchisee to takeover ownership of this new Napa location and we are very excited about this candidate's experience, enthusiasm and knowledge of the health club industry."
The fitness center at 1850 Soscol is expected to open within the next three to four weeks.
Both Cook and former franchise owner Dayton said their first choice would have been to keep the Imola Avenue location open, but had no luck negotiating with the mall owner, River Park LLC.
Citing "ongoing legal action," Jan Harder with mall property manager Shelter Bay Retail Group could not comment on Lady of America's River Park lease.
Dayton, also owner of the closed Consigning Women resale shop in River Park, said the experience of losing her business was "traumatic." Given five minutes to leave the Lady of America gym, and followed by a sheriff and locksmith, she said, "I was dumbstruck."
"I had fallen behind in rent, there is no question there," said Dayton, who reportedly owed $63,000 in back rent at the gym.
Dayton said she paid $12,500 to open the gym franchise in 2004.
"The gym was my dream to provide a place where women could feel comfortable. I strongly believe I did give that ... Unfortunately, I did it as I was slowly bleeding to death to keep the gym afloat," said Dayton.
Dayton said her franchise was breaking even, "but when Synergy (Medical Fitness Center) opened, our membership took a nosedive and we never recovered."
Why did she hold out for so long? "I guess I preferred to slowly bleed rather than hemorrhage."
Dayton said the gym employed 27 people.
"I had some great employees," she said. "The bulk of them were instructors that train at other clubs, so they still have other income."
However, "There are about nine employees out in the cold. A lot of them were really affected. I have been trying to do whatever I can to help them out. We just have to pick ourselves off the ground and keep going. We all miss the club. For the most part, most of my members are very understanding."
The businesswoman said she's filed for Chapter 13 bankruptcy protection.
"I'm just going back to writing for a living," said Dayton.
"After four years of owing everyone money, I feel a little bit relieved," said Dayton. "I didn't know what was going to happen and it's not all that bad. I have my health and a wonderful husband and my pets and I get to keep my home. Everyone will miss Lady of America, but we'll all get on in life."
"It's bittersweet," said Dayton. "The gym was a great place while it lasted."
Lady of America members with specific questions, including memberships and contracts, can contact Stacie Davis at 954-854-8986 or Barbara Dunn at 480-513-1883.
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