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Lady of America closes - again
Friday, October 03, 2008
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By JENNIFER HUFFMAN
Register Business Writer
Lady of America members must be feeling a sense of déjà vu. The Soscol Avenue Lady of America gym closed Oct. 1, about a year after the sudden closure of the same gym, then located on Imola Avenue, sent members scrambling.

After the 2007 closing, the then-franchise owner was removed and Meghann Pierce became the new Lady of America owner. Now Pierce has shut the doors.
“My whole purpose was to create a positive environment for women in Napa Valley,” said Pierce. “I did it as long as I could possibly do it, but I ran out of all my resources.”

Challenging economic times and rising rents were to blame, she said. Rent on the 7,700-square-foot space was due to increase from $19,000 to $32,000 monthly come January, she said.
“I’ve never generated any kind of profit,” she said. “I tried to work with the landlord and franchise. I did everything I could possibly do and then some. I didn’t have any other option but to close.”

“I can’t see the club re-opening at his point,” said Gerry Weber, president and CEO of Lady of America Franchise Corporation.
The rent at 1850 Soscol was “exorbitant,” he said. “The landlord is not willing to be reasonable.”

1850 Soscol is owned by Granite Creek Apartments, Inc. and managed by Channel Properties.

Mark Funseth, spokesman for Channel Properties, said when the group purchased the building in January 2008, Pierce was an existing tenant.

“When we bought the building we assessed the gym as a risky tenant but took our chances,” he said.

Pierce couldn’t meet her current obligations and was behind on the rent, he said. “It has nothing to do with the rent increase.”

Pierce was already paying “well under” market rate of $2.25 to $2.50 per square foot (plus taxes, maintenance and insurance) for the initial term of her lease, said Funseth.

“If she can’t make it at that rate, she couldn’t make it at market rate,” he said.

Funseth said he’s confident he will be able to lease the space. “We’ve been talking to some other businesses, such as insurance and other professional kinds of companies,” he said.

About 1,200 women belonged to the Lady of America in Napa. Weber said a new potential franchise owner backed out after reviewing the rent package.

“There is no way we can have (an new franchisee) go into that space under those onerous terms,” he said. “We’re obviously very disappointed. We thought we were on the right track. We had new members. It was a much better environment than the old location.”

Tammie Stephens, who worked with Pierce, said the gym was popular with its female-only clientele.

“The ladies just loved it there,” said Stephens. “It was more than a Lady of America, it was family.”

Questions about gym memberships were directed to ABC Financial Services at 888-827-9262.

Members hoping to use the Fairfield Lady of America gym are out of luck. That location closed Sept. 27.
46 comment(s)

ValleyKitten wrote on Oct 2, 2008 7:24 PM:

" What a shame, Meghann is such a wonderful person. She loved her work and all the ladies of Napa, being able to help and guide them to a healthy lifestyle and positive being. I wish you luck in your future ventures. "

justnana wrote on Oct 2, 2008 7:31 PM:

" Good luck landlords. That building was empty since the remodel and I can't imagine people are lining up to pay that much rent! Sounds like Napa's ladies lost again. "

skippert wrote on Oct 2, 2008 9:22 PM:

" I am so tired of the rent going up. How are people suppose to run a business without charging a fortune for the produce if the rent alone won't stop going up. Just be glad you have someone renting it at $19,000 a month! Stop the madness, I see other place that aren't the wine country and things are cleaner, reasonable, and flow nicely. Why do we have to spent so much money on our veterans park and look at it the grass is already looking bad. Whatever lets keep letting the big wigs do whatever it is they are doing to make this place great. Ha-Ha "

pbsm777 wrote on Oct 2, 2008 9:33 PM:

" $32,000 a month Good Luck. Channel Properties is Desimone's, I believe... the same as the riverfront project.

$32,000.00 per month, maybe AIG could move in there, they are an insurance/investment company that just got a big boost of taxpayer bailout money.

$32,000 per month, get real people.

One more vacant building in Legendary Napa Valley. "

NapaConservative wrote on Oct 2, 2008 10:14 PM:

" well I was a member there and I feel horribly for Meghann... I could tell she really had a passion for what she did, but sometimes that's what happens. Life hits and $32,000 is a HUGE jump from 19,000 a month. I'm just wondering now if I get my deposit back? "

redwood_roadie wrote on Oct 3, 2008 7:42 AM:

" If the property manager believes the market rate for this area is $4+ per sq. foot, he is delusional. That is comparable to silicon valley rates during the dot-gone boom-- it is not the reality of Napa. Hope his guy can pay his bank note on empty space. "

mamawana wrote on Oct 3, 2008 7:46 AM:

" OMG! You have to wonder WHO or WHAT kind of business can afford such an enormous rent, even at $19K a month... a winery perhaps??? Well, it will serve the owner right to have it sitting there empty with zero income for a long, long time. Look how many stores are already empty.... land owners just keep s**king the poor little business man dry. Shame on you! "

walktothepark wrote on Oct 3, 2008 8:06 AM:

" FYI - Some gyms in Napa are offering specials to LOA members. "

misfit wrote on Oct 3, 2008 8:06 AM:

" redwood_roadie....No...it's, "Hope this guy CAN'T pay his bank note on empty space". "

ValleyKitten wrote on Oct 3, 2008 8:07 AM:

" To all the ladies that were members of LOA. Meghann has no control over the contracts, those are all through LOA. She has notified LOA of the closing, it is up to LOA to stop the monthly charges and/or membership fees. It is a franchise and Meghann was only a partner in that. LOA owns the contracts.

And Yes, pbsm777 it is the Desimone's who own the building.

Thank you skippert, pbsm777 and justnana for your comments, I could not have said it better myself.

It is about time people are realizing what Napa is becoming. They could care a less about the folks that live here. It is about the dollar and the people that visit here. Maybe the Desimone's will turn the building into more condo's. Because I am sure that is what Napa needs more high priced condo's. LOL "

napasue wrote on Oct 3, 2008 9:28 AM:

" I don't know if indeed Meghann was behind on the rent, but the increase by Channel Properties for January is just another sign of why it is so hard for Napa businesses to succeed. But what about the WOMEN! Yes, it's a franchise, but Meghann was for WOMEN in Napa. The childcare was a huge benefit for young moms and the gym was warm and friendly. What I admired most were the WOMEN - young, old, overweight, and supershaped - all working to better themselves. Whether we go to another gym no matter what deals they may offer to LOA WOMEN, the gyms will not match the comfort and personal warmth that Meghann, Mystie and the rest of the staff provided. WOMEN of Napa should be furious with Channel Properties. I am.

Best to all of the staff at LOA. You all deserve it. "

amazed wrote on Oct 3, 2008 9:47 AM:

" The small businesses in River Park Center will be next. All in the name of progress. "

napaattitude wrote on Oct 3, 2008 10:12 AM:

" Hmmmm. Napa LOA closes once, then twice, Fairfield closes . . . could there be a problem with the franchise here? I thought a franchise was supposed to bring business because of its name recognition, but outside of reading about Lady of America (LOA) closing in Napa and Fairfield I've never heard of this franchise, and I've done a lot of traveling!
Too bad for all the former owners of this fledgling franchise that doesn't fly. "

Redredwine wrote on Oct 3, 2008 10:46 AM:

" I still miss the LOA in the River Park shopping center, Laura Dayton (former LOA owner) also loved what she did and had the passion, but at the end it all comes down to $$.

$32,000 Monthtly??!!! Yikes! "

merri wrote on Oct 3, 2008 11:15 AM:

" The first time it closed down I wanted to go another gym and I was told I have a contact and wait it out. Wait it out, ???? you got to be kidding. I called back again and spoke to someone else and told them I would like to leave. I was told no, I would have to wait for the new location. I told them to shove it and cancelled my credit cards. What a pain. I still was over weight, out tons of cash for having a contract that they could not fullfil and a bad taste in my mouth. So I am now at another great gym on lincoln, have a better workouts and at my target wieght all in a comfortable and supportive setting. Good bye losers "

WHY wrote on Oct 3, 2008 11:26 AM:

" There isn't any business that will go into 7000 sq ft and survive at $32,000 per month. Mr Funseth you and your company need to get real and come to your senses. Let's see $383,000 a year for lease payments triple net (taxes, insurnace, maintenance) on top of the lease so we say $400,000 round numbers. About the only thing that could survive in 7000 sq ft would be, lets see...... oh thats right Nothing. Sit on and let it eat into your profits.

Lady's of America it was fun while it lasted. "

najunky707 wrote on Oct 3, 2008 12:24 PM:

" i have been a member since 2006 and when the doors closed last time i cancelled my membership and when they reopened i had to go back in there and recancel and get my money refunded and now that they are in a financial mess they started taking my money out and now they are closed again they wont refund my money and told me too bad they cant do it with out proper information from the owner that she closed it and it is staying closed "

ValleyKitten wrote on Oct 3, 2008 12:30 PM:

" To Merri-
I hope you are not calling Meghann and her staff losers??? You obviously do not know them or no the whole story.
Meghann is a kind spirit and did all she could do to keep the gym open. Despite her partners that left her high and dry. Taking advantage of her and her money. Then the huge rent increase. What else could she do but close.

I too was an LOA member and lost a lot through this. But, I gained a geniune friend in Meghann. I believe I came out in the better from this loss.

Please do not use this forum to bash Meghann and her staff. Meghann is an amazing person. All she thinks about since the close is how she can provide a space and volunteer her time to her ladies from the gym. She is selfless. Meghann volunteers her time, most recently to Tech High youth.

More people should be like Meghann and the world would be a better place.

Blessings! "

ValleyKitten wrote on Oct 3, 2008 1:39 PM:

" najunky707 and all other ladies...call Gerry Weber, CEO and President of LOA. That is the person that needs to call the financial people to stop the monthy payments and membership. Meghann does not have the power to do it. LOA has power over the contracts. Meghann Pierce does not. So, if you have complaints and issues call the headquarters of LOA. They are the ones that get all your monies, Meghann does not recieve them directly, the franchise does. Meghann has done all she can do. "

Sickothis wrote on Oct 3, 2008 2:05 PM:

" Location. Location, Location. "

justhere wrote on Oct 3, 2008 2:24 PM:

" I understand that finances were tough to handle and that Meghann is a really nice person. However, it is wrong to not give any warning to employees, gym members, or future members that she would be closing. Days before and paid the $159 to join. I went one time and then wasn't able to go for a few days. When I went to cancel my membership and make sure my credit card wouldn't be charged anymore, they said I wasn't even listed as a member. My check was cashed, but my paperwork never went through. That's just wrong. Meghann should have given warning. She should have stopped accepting new members once she knew she was going under. "

luvmynapa wrote on Oct 3, 2008 2:33 PM:

" Ok, we have three closures of an LOA facility in our area within one year. Common sense tells me that there is a systemic problem.

In what state is LOA corporate registered? Who is the registered as the officer of service?

You can bet your sweet hiney that LOA isn't going to be out of pocket one dime on this.

Ms. Pierce ran an awesome gym and her staff was phenomenal. You know who is going to be ruined financially - Ms. Pierce. And LOA won't lift a finger to help her out. In fact, they will more than likely direct and deflect any threat her way.

I'm sorry the gym is gone. Some great gals worked out there. "

CT Diva wrote on Oct 3, 2008 3:18 PM:

" I joined the LOA in August after moving from here from the East Coast. Meghaan was my personal trainer and she was wonderful. The facilities were so clean, I was in heaven! Then this happens but you can't blame Meghaan, blame those idiots who own the building and the Franchise! Been calling them all day. Tip: if you call ABC Financial and provide them with your mothers maiden name (as a password) they will cancel your CC monthly debt fee. Just keep calling those@#*& at LOA in Florida! "

napachica wrote on Oct 3, 2008 4:01 PM:

" Merri, I couldn't agree with you more. LOA was so difficult when it came to trying to cancel your membership. VALLEYKITTEN, I don't know about your but my genuine friends are not going to pay my bills! "

ValleyKitten wrote on Oct 3, 2008 5:43 PM:

" Napachica..I pay my bills and my commitments..I read my contracts..and it clearly says my contract is with LOA not Meghann Pierce..It is a bad deal all around..I lost a lot more than the average member..I do not blame Meghann, I blame the old partners who took all they could and left Meghann holding the bag, I blame LOA for taking the monies and not helping her out, leaving her holding the bag and I blame the landlords for increasing the rents.

Please do not bring Meghann into the past closesure of LOA on Imola or any other facilities, she had nothing to do with that. She did right by her employees and was not forced to close, she did it without that. She made sure things were taken care of, as far as her control....That is a seperate issue all together. You bringing your energy in from a year ago, is unfair to Meghann take that up with the appropriate parties.

I feel bad for everyone, including myself, and more so for Meghann, her mother and her grandmother. You have no idea what Meghann has lost. Much more than you or I.

Be Kind, to yourself and others. "

ValleyKitten wrote on Oct 3, 2008 5:46 PM:

" justthere, It might be because Meghann did take precautions and cancelled all newer members and returned their monies..that might be why you are not listed as a member, hold out and see if your monies return or your credits...wishing the best to everyone.. "

14obama wrote on Oct 3, 2008 8:37 PM:

" Just another example of Greed run rampant. Some of us believe that money will solve everything. The Love of it will blind us from the Truth. The owner could have given them a righteous deal and both parties would be happy.
I believe our society is spiritually bankrupt. WAKE UP,PEOPLE ! "

merri wrote on Oct 4, 2008 8:59 AM:

" Valley Kitten what ever the reason your friend is a bad manager and involved in this mess. I am out cash, wasted 8 months of waiting and now I think it's time for a class action law suit! Bless that! "

birdie887 wrote on Oct 4, 2008 4:13 PM:

" I joined in the last month. Was not told of the closing and have not recieved any of my money back. "

ValleyKitten wrote on Oct 4, 2008 9:43 PM:

" Merri, all do respects..Wasn't it the Imola LOA that you joined??? Meghann Pierce has nothing to do with that closure nor did she manage it??? "

napaao wrote on Oct 5, 2008 2:06 PM:

" good luck cancelling!!!!!

its a nightmare.

poor meghann :( "

ValleyKitten wrote on Oct 5, 2008 6:04 PM:

" FYI To all-
Lady of America owns ABC Financial Services. Lady of America has control over the membership agreements and is responsible for refunding any dues taken the last half of September and on. They did not fund Meghann this money. Lady of America is a franchise, you may search under Lady of America lawsuits to find out more about how this franchise operates.
There are reasons that Meghann chose to close the gym without warning to the members, as it was a decision made that day after realizing there would be simply no negotations on behalf of the landlord (Channel Properties same as Granite Creek Apartments and Channel Lumber - all owned by the DeSemoni family) or help from the Lady of America Corporate office. And making sure her staff was paid and clients/members refunded was the most important thing to take care of. There is a reason the rich get richer and it's not through honesty and creating good karma. "

napa111 wrote on Oct 5, 2008 9:45 PM:

" while we are trying not blame the owner of the gym, there should be something done about how the franchise is handling this situation. If you read your contract agreement when you join and pay initiation fees you are required to maintain your mebership for the entire 12 month, 24 month or 36 month agreement. If you do not maintain that agreement, you will be held accountable for membership charges. So, if the comapny cannot provide you with a membership than they should be held accountable as well. Well as it stands, I had a membership when the gym was in riverpark and when they clsed I was charged two months after they had closed on Octber 12th. The franchsie continued to debit my account for October and November. I was never reimbursed. I then joined the gym when it opened in February because the franchise just automatically charged my account. Meagan immediately credited my account and I later decided to join again. The day before the gym closed again, I ws at the gym and no one ever mentioned anything about the gym closing and th very next day I went to the gym to find a note on the door regarding the closure of the gym. In addition, the franchis debited my account two days prior to the gym clsong and now they will jot credit me for my membership for the month of October. It is terrible that a franchise operates this way. This shows what a horrible company it is. Now all of us members have to try and get our money back plus put out another initiation fee at another gym...such an inconvenience. A bad company....BAD BUSINESS! "

napa111 wrote on Oct 5, 2008 10:18 PM:

" Although valleykitten states that the main priority was to pay staff and refund memberships, well I have not been refunded nor have several other people I know been refunded....I will handle this charge with my bank....also you mentioned other lawsuits with Lady of America...how can I find out about those lawsuits? I do feel bad for Meagan and I hope that NO ONE EVER decides to do business with Lady of America again, sounds like Dan Noyes with channel 2 news should include this company with his list of bad businesses........ "

CT Diva wrote on Oct 6, 2008 1:47 PM:

" Ladies,

Been doing a lot of research. Our contract is with Gerry Weber at LOA Franchise Corporation not with Meghann so lets all call Mr. Weber at 1-800-833-5239 ext 7770 and leave him a nice voice message, of course he won't answer but I just gave him a pice of my mind. By the way I got refunded for my personal training classes. Thank you. "

napag wrote on Oct 6, 2008 1:47 PM:

" That gym was so beautiful and comfortable. I have to tell you that Meghann was the gym - her colors, her energy, her warmth and her enthusiasm. Every time I went in there, her employees greeted me and were so helpful! I think that she should take her equipment and her employees and move to a less expensive location. And, if LOA owns those contracts, and Meg can't have them, then let us ladies know where she is and we will follow. But make sure you know who the landlord is - or is not. By the way, I heard that there is another LOA in Pinole and they are going out of business, too!
I miss my opportunities to work out in a nice clean wholesome atmosphere, where we can bring our children, feel that they are safe and clean, and don't have a bunch of sweaty men gawking at us! It was a great place for women and I was looking forward to the juice bar opening. "

nona105 wrote on Oct 6, 2008 4:08 PM:

" Curves is offering a free week and $30 Service Fee to all Lady of America members for the month of Oct. Check them out. "

CT Diva wrote on Oct 6, 2008 4:30 PM:

" Napag, you are so right! Hope Meg does that... "

ValleyKitten wrote on Oct 6, 2008 6:06 PM:

" Exactly ladies...bad business on the behalf of LOA....Meghann did all she could do to get your monies back, some she did and some not..for those not, do as the above comments have said..Yes..we should call channel two Dan Noyes...or a class action suit action LOA...I agree..Meghann tried to give everyone a decent notice...but, she new of her closing that day and no sooner did she have a definante answer..she let you know has she knew, she wishes she could have given a better notice...but....that is when she knew...Thanks to all for the support of Meghann..I know she appreciates it all. Thank you and Blessings "

oceansundance wrote on Oct 6, 2008 7:04 PM:

" Lady of America Corporate/ABC Financial have any membership dues from September 15-present.
They HAVE to refund these to you. I don't see how they don't HAVE to, they did not fund this money to the gym account.
This is Meghann.
Thank you ALL for your love, support, and kind words. I did not make the decision until the day of - yes - September 30th and there was unfortunately no way I could get communications out in a timely manner and be able to make sure things were taken care of for the staff. If you recently signed up, it may not have posted to the ABC system - takes up to two weeks, at which point, they will have record of you and you can get them to refund you. If you signed up the week of, your transactions were voided, checks ripped up and mailed back, etc.
I am a very honest person and did everything in my power to close the best way possible with a lot of challenges to manuever around... and unfortunately, no time to get the word out ahead of time, due to circumstances beyond my control and the decision made the day of.
I have been approached to open a new gym, be hired on by other gyms in the valley, etc - right now as you must all be, still in shock and focusing on my family. Just wanted to thank you all for your tremendous support, know I loved the gym and every single member and will be in touch very soon. Thank you for reminding me that there are beautiful, good, and warm people fighting for what's right. For those of you who have left a message, calling each and every one of you back personally. Give me time. "

pince wrote on Oct 6, 2008 8:44 PM:

" It's sad to see this happen again. Unfortunately, the franchise doesn't support its franchisees at all nor does it really care about the women it is supposed to serve.

Club Tan is also offering a deal to LOA members. They will let LOA members use their gym free for the rest of 2008 if ladies will commit to a 3-month membership in 2009. They are also adding classes soon.

Ladies have to stick together and go to a place where they are more than just an id number or an auto debit. Go somewhere where people know your name and genuinely care about your well being. "

meltoes wrote on Oct 7, 2008 12:29 PM:

" Meghann - you did a great job, made a great effort. I must say from the LOA of Laura Dayton's days to the present there was a 400% turn around. Shame on the locals who own the building for raising the rent!! That building has been empty since La Cancha left it seems...
Meg - come to Synergy and teach some of that awesome kick boxing!!! "

Napagrrl wrote on Oct 8, 2008 11:35 AM:

" What was interesting to me is that all over the windows at the FIRST LOA were signs that said, "$1 per day" and "No Contract," and so on. When I tried to cancel, I was told I had a 3 year contract. And, yes, I did read the contract before I signed. Problem is, that Laura Dayton called me one day to say that there was a problem with the original contract, something wasn't filled in correctly. But, don't worry, she'll fill it out for me and all I have to do is to re-sign it the next time I come in. THAT time, I did not read it. I wonder if this happened to anyone else? Maybe we were all scammed the first time around! "

napa111 wrote on Oct 8, 2008 9:54 PM:

" Well maybe 7-On Your Side will get ahold of this and expose how bad this franchise or company is and maybe some of us be reimbursed for member fees charged after the gym closed and maybe we could even be reimbursed our initiation fee since we are not able to fullfill our 12, 24, and 36 month contract that signed and paid for........ "

napaattitude wrote on Oct 9, 2008 9:05 AM:

" Lest we all forget, LOA came to Napa with Laura Dayton, who built from nothing one of the West Coasts largest women only clubs from the wreck of an old building. She put her heart, soul and every dime, including her inheritance from her mother, into the gym and it became a force in Napa--a place where lifelong friendships were formed and more than 2000 members enjoyed the largest aerobic class schedule in Napa, plus great equipment.
That franchise sold three times since Laura opened it. The Queen opened Synergy with a budget that had no end. Things changed. The franchise that promised Laura no member would be left behind left everyone behind, and sued her for $180,000. She lost her home, her possessions and life as she knew it in Napa.
The franchise, not Laura, sold Meghann a pack of lies. Both these women are victims of believing too much of what they hear. They both had bad partners and a bad franchise.
Please quit the personal bashing. All you're doing is sounding like a bunch of gnarly cats on the back fence. Leave it alone, and bring your fight against LOA, the franchise that left all the women, Laura and Meghann included, out in the cold. "

glenroy wrote on Oct 10, 2008 9:29 PM:

" napaattitude...very well stated...Having a history with that building in the past….it won’t be easy to release unless a sister company takes the space over. But, the fact is LOA had no business going into that location without a long term lease to lock in an affordable rent scale. No doubt from these comments the franchisee, business owner, was both well liked and respected operator, but Franchisors are surprisingly ignorant of the burdens they place upon their franchisees…and while the pretend to be concerned, they are myopically focused on gross revenue from which they derive their royalties, oblivious to the operational costs….sad deal the operator deserved more corporate support than she received.

Napa has an abundance of Health Club capacity and over the past couple decades virtually every health club restricted to a gender effectively cut themselves out of 50% of an already highly competitive market….and that is what ultimately caused LOA to fail….the Business Model was flawed from the start. "

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