After failing to obtain new financing from new investors, the owner of Gold’s Gym Inc. of Springfield filed for Chapter 11 bankruptcy. However, Maureen Suhadolnik is promising customers that the gym will remain open during and after reorganization. She also stated that memberships will not be affected.
Suhadolnik cited financial setbacks, including the shutdown of another Suhadolnik company called Crazy Horse Concrete, as the main factor in the Chapter 11 filing. Crazy Horse provided the collateral for the Gold’s Gym loan. In the petition, debts of $1 million to $10 million on assets of $50,000. According to the State Journal-Register, the Illini Bank of Springfield as one of the 20-largest creditors at almost $4.5 million. The Illini Bank is also the Gold’s Gym mortgage holder and was the mortgage holder for Crazy Horse Concrete. Other creditors include the Internal Revenue Service, Illinois Department of Revenue and the Sangamon County Treasurer’s Office.
The gym has 35-40 employees including the contracted trainers. It is also used by several organizations like the Andre Iguodala Youth Foundation, the Springfield Basketball Association men’s league, Robert Morris College, and Benedictine University at Springfield.
Suhadolnik is confident that filing for bankruptcy will only make Gold’s Gym stronger. She had the following to say, “Gold’s is my life, my passion, my dream,” said Suhadolnik. “I want nothing more than for it to succeed.”
According to court documents, the initial meeting of the creditors is scheduled for tomorrow.