New York Sues Sports Club, Lucille Roberts Over Covid Gym Fees
(Bloomberg) -- New York Attorney General Letitia James sued the New York Sports Club and Lucille Roberts gym chains for charging dues to members for facilities that remain closed due to the coronavirus pandemic and failing to honor cancellation requests.
James filed suit Wednesday in state court in Manhattan against Town Sports International Holdings Inc., which owns both chains. The attorney general is seeking a court order blocking the company for charging for shuttered facilities or canceled memberships.
The gym chains came under fire from James earlier this year for charging April dues despite being shut down by Governor Andrew Cuomo in March. They agreed to stop billing members while they were closed, give credits to those who were charged and allow customers to cancel their memberships.
But James said they resumed charging members Sept. 1 even though some gyms remain closed. They have also not offered the promised credits for the dues that were charged in March and April, according to the New York suit.
Town Sports filed for Chapter 11 bankruptcy protection earlier this month, saying it was unable to keep up with debt payments after it was forced to shut its gyms for months. The company is seeking to close certain locations permanently, depending on the outcome of talks with landlords and has support from its lenders to pursue a sale of its business.
The company didn't immediately respond to an email seeking comment on James' suit.
Read More: N.Y. Sports Clubs Members Get New Bills From Struggling Gym
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