Spa’s Shaky Financial Health Worsens as Creditor Removes Workout Machines

The exercise equipment at The Reformatory, a Universal City health club that has been in financial straits for several weeks, has been repossessed, effectively closing the club.

Although club owner Bill Crawford said he intends to keep the studio open to teach aerobics classes and allow members to use the Jacuzzi and weights, the Lankershim Boulevard club essentially was shut late Tuesday afternoon when Puritan Leasing, which owns most of the exercise equipment, reclaimed its workout machines.

Paul Menzel, general manager of Puritan Leasing, said Crawford “certainly had free use of the equipment long enough and he never paid us a dime.”

No Contract Signed

Crawford acknowledged in an interview that he had neglected to sign a contract with Puritan Leasing as part of his agreement to buy control of the health club last December. Although the leasing company wanted a $3,000 deposit on the equipment and $2,000 each month in rent, Crawford said, the health club did not make enough money during the brief period he has owned it to cover the bill.

Property managers for Lucasfilm Inc., which owns the building, declined to comment on the club’s situation.

Despite the fact that Crawford had shut down four spas in the San Fernando Valley area in the past two years, he was able to gain control of The Reformatory without making a down payment by promising to pay $24,000 in weekly installments.

Income from new memberships and a $2-per-visit fee Crawford instituted last week did not keep pace with the club’s $25,000 monthly overhead, he said, and he has fallen behind on most bills. Reformatory manager Mark Sumner said the club’s income averaged about $200 a day over the past month, most of which was used to pay utility bills and the club’s staff.

In a promotional gesture, Nautilus Plus Aerobics in Studio City is offering six free months of memberships to Reformatory members who agree to pay a $49 registration fee and $7 per month for a year.