Health Club wars

UPDATE: 10/26 Tuesday morning
So who needs reporters when we have Faceboook? Sounds like the meeting last night of Leading Edge "gym rats" at Basta e Basta was about as disorganized as the final days of the Club itself.

A former member reports:

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Original upload: 10/25 Monday afternoon

The Springfield Republican reports (via a Daily Hampshire Gazette reporter)

So I'll try to be a tad less critical of my friends at the Gazette and Republican as today's Business Section long form article simultaneously published in both is a pretty good analysis of the current state of the volatile fitness market in the healthy, Happy Valley.

Reporter Scott Merzbach did his homework and even took into consideration feedback posted to the original Gazette breaking story (as late as it was) on the sudden closing of 'The Leading Edge' gym in Amherst and the diatribe the same nitwit posted on my blog.

The Anon insists of course that the appearance of a low-cost chain outlet like 'Planet Fitness' and the $50 million Rec Center (otherwise known as the Deathstar) going on-line one year ago, had little impact on 'The Leading Edge' and the "real story" was the soap opera antics of the two owners Peter Earle and Joanne Delong. Yeah, and Santa Claus is Muslim.
All the average person need do to assess the impact of a 'Planet Fitness' or others of that ilk is to consider what would happen with their buying habits if suddenly a sparkling new gas station (owned by a regional chain) opened on Rt. 9 in Hadley charging only $.69 for Regular--four times less than the prevailing price of $2.79?

Sure, somebody with business sense might wonder "How can they do that?"; but as long as you get your gas at that ridiculously cheap price, why would you care?'Bally Total Fitness' pioneered the low-cost, high-volume, pack-them-in-price modality 40 years ago, but they were smart enough to tie consumers in for 24 to 36 months to an unbreakable contract.

And when they killed the other clubs in the market they would also raise their rates.

'Planet Fitness' doesn't do that (I guess that is to their credit.) They simply sell as many memberships as possible at give away prices and hope most of their clients never show, which is probably close to the truth.

But I have to admit the soap opera aspects of the recent demise of 'The Leading Edge' is kind of fascinating. Apparently after the two experienced Gold's Gym franchise owners in Boston (who had given Peter Earle his start in the industry with a sales job) wisely bailed in 2004 two years after founding Gold's Gym Amherst, Ms. Delong--an attorney not known for her level of fitness--came to the rescue and bought in as half owner.

Interestingly she used her ownership of a business condo at 30 Boltwood Walk in town center as the major payment "transferring" one-half ownership to Mr. Earle. Although the legal papers (probably drawn up by her) were not legal and now Mr. Earle has filed a lawsuit against her.

Either way, I had toured that particular location in 2004 just after Pruddy Gomez finally gave up on his boisterous bar Amherst wished to quash for a slew of zoning violations. Interestingly, Pruddy used his landlord Joanne Delong as an attorney, so she was making money off his rent and his legal troubles.

Regardless, the place was beyond a dump by that point. I think the asking price was about $200,000 and if it was in turn-key shape I probably would have purchased it, but the state of disrepair required another major investment to rectify. At the time the valuation was $200,500.

Thus half-interest was worth $100,000. Sweet deal to buy half of Gold's Gym back when it still had that Gold Standard name for essentially a worthless piece of paper. According to industry standards a recreation business is valued at about double annual sales, and I assume Gold's did at least $1 million in sales in 2004, thus making the value of the business $2 million.

It would be interesting to see how much cash Ms. Delong came up with in addition to the worthless $100,000 property deed?

Amherst dodges another bullet

Epilogue: So here it is 9:15 PM and my friends at the Springfield Republican still have not covered this rather important piece of news. Umass sent out perhaps 15,000 emails to staff and students yesterday and posted the potentially catastrophic news on their main website as did the town of Amherst at about 3:30 PM and it took both the Gazette and Republican till almost midnight to get it up on their websites. Inexcusable.

And only now at this late hour has the Gazette put up a "breaking" news story telling readers that boiling water is not necessary. It broke...a long time ago.

Town officials disappointed me a tad as well. They obviously knew I--the only reporter who took enough interest to show up-- was sitting out in the hallway waiting for the results, which they had around 1:15 PM.

I actually thought I heard clapping in the room about that time but it was muffled and a young college student who was waiting to report a stolen Mac laptop was distracting me. At 1:20 PM they send out the reverse 911 robocall from Town Manager John Musante saying the coast is clear. Info Tech Director Kris Pacunas had told me earlier that it only takes a few seconds to make that happen. Then at 1:31 PM the town website is updated with the news. SB Chair Stephanie O'Keeffe even emailed a few folks at 1:40 PM to give them the news. Meanwhile I'm pacing the hallway ten feet away worried I'll get a parking ticket. As Rodney Dangerfield would say, "I don't get no respect!"
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Liveblog: Arrived Police Station town center 11:45 AM

UPDATE: 1:47 PM Water tested safe. I'll drink to that!

12:04 We will know any minute now.

Town officials are hunkered down in the war room: new phones brought in, a couple hardwired computers (for Internet, since the anticipated results will be emailed). Stephanie O'Keeffe Select Board Chair and Town Manager John Musante just arrived. Guilford Mooring DPW Chief, has been here for a while. Fire and police officials of course (we are, after all, at the Police Station.) Kris Pacunas, Director of Technology.

12:17 PM Still waiting out in the lobby. Yeah, they threw me out of the war room.

12:24 PM Dave Ziomek, Conservation Chief, just left the room saying he was "the runner."

12:26 PM He just returned, and I asked if the "Results were in?". "No", he replied

12:47 PM Still nada. And my battery is running low. Wonder if they're serving coffee in there?

12:58 PM GRRrrrrrrr...

1:14 PM I just noticed the change the time on the town website to say after 1:00 PM for info up from 12:30 PM. Not sure what the hell is taking so long.

1:

Cross your fingers folks

UPDATE: 10:00 PM Still waiting for my friends at the Daily Hampshire Gazette and Springfield Republican to get on this story. Even the Umass Daily Collegian got it up around 6:00 PM. I went to bed but they did both get around to the story just before midnight--better late than never.

3:45 PM
So Saturday just after high noon we will know if the town of Amherst--who supplies Umass all of their water--will have to issue a "Boil water" alert. And if you live in a dorm that could get tricky.

Normally that would not be a huge B-I-G deal, an inconvenience for sure, since it is mid-October and Umass is in session. But Umass is hosting the sold out Phish concerts this weekend at the Mullins Center and they tend to attrack a H-U-G-E crowd. Presumably that crowd of 20,000 will require water. Although any excuse for them to drink other beverages will probably go over well. Yikes!
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To the Campus Community:

During recent routine water testing, the Town of Amherst identified
limited instances of total coliform and E. Coli bacteria in its water
system, which supplies the campus. Further tests are being conducted
and results will be available Saturday afternoon. Public health
officials will determine at that time whether a “Boil Water Order” is
needed.

Should such an order be issued, the university will activate a campus-
wide precautionary plan to minimize any potential health risks. This
will include ample supplies of bottled water and hand sanitizer and
detailed instructions on how to take preventive measures.

Further details about the water testing can be found on the Town of
Amherst web site at www.amherstma.gov.

The university will continue to communicate with all members of the
campus community on the status of this health advisory.


Donald Robinson
Environmental Health and Safety


A history lesson about water--or lack thereof in Amherst

Town website gets the word out

And another one gone

Adios Andiamo

While the old conventional wisdom that "half of all start ups fail in the first year and by the 5th year 90% have failed" turns out to be false, it is safe to say that half of all small businesses fail by year five--perhaps as high as two thirds. And restaurants and health clubs certainly make the short list as usual suspects when it comes to a high failure rate.

Thus making sane folks who like the safety of steady employment working for someone else think twice about starting their own business. Although in this economy, there seems to be no such thing as safe, steady employment.

Rainbow over the land

Another one bites the dust

Postcard mailed to all of Amherst last week: one way to try to compete against "free"


Not good when a "partner" suits a partner!

UPDATE: THURSDAY 10/20 2:00 PM

So apparently a move is afoot--on Facebook naturally--to form a co-op and have the (former) members take over the recently deceased gym. What the hell, it works for Collective Copies and Pelham Auto and, hmm, maybe 1 or 2 more out of Amherst's 700 or so businesses.

Sorry folks, hate to hail on your parade, but unless you get Donald Trump (or Barry Roberts or Curt Shumway) on board to buy the property and adjust the rent downwardly out of the goodness of their hearts, with the current rent/lease costs you have less than a snowballs chance in Hell. Although, Greg Boisseau is no slouch. And he lives next door, so he's motivated.

From: iam@gregboisseau.com

Hi All (fellow gym Rats),

Greetings. I took the liberty of creating an email list of all the folks (from the Edge) I have email addresses for in order to keep us all "in the loop". If you know of someone who should be on this list please forward me their information (and forward them these emails).

I was extremely surprised and shocked to find our gym (our community) closed as of 5:00 on 10/19/10! I am sure you all share this same frustration and anger. There are a couple of things I would like to share with you: I do not know much but there is a move afoot to re-open the gym. To that end I would like to have a meeting with as many of you all as possible. At that meeting we will have a potential principal owner present. This meeting will be a great venue to express your ideas and thoughts about how we can move this forward. The new ownership/s will need our help getting the gym back on its feet. There will be no monetary financial solicitation!! I would like to have this meeting soon, I am thinking either Friday (10/22) or Monday (10/25) evening (6:00 ish). Let me know what works best for you so I can secure a venue.

On another note, I know there are three sides to every story (his, hers, and the truth); as it pertains to the two principal owners and the email letter we received (as to the sudden closing of the gym), I do not put much (or any) stock in, nor do I trust the author of that letter. If you feel the sudden closing and slanderous accusations (in the letter signed by Joanne DeLong) was insulting, disruptive, etc, I would invite you to express those thoughts/opinions in to the press and or social networking sites.

Keep smiling and Be well

Greg

ORIGINAL POST 10/19 3:30 PM (W-A-Y before the DH Gazette)

So the "Leading Edge" gym, formerly "Gold's Gym" is no more. As Captain Renault in Casablanca would say, "Shocked, shocked to find..."

Kind of hard to compete with that other nearby chain facility charging only $9.95 per month, when current nationwide averages for the Health Club industry are at the very least four times that.

Or that state owned $50 million recreation facility on the Umass campus that charges undergrads (a favorite target demographic of 'Leading Edge') exactly ZERO.

No, as a former competitor for 95% of their lifespan, I don't take great joy in this unsurprising news, and I will try hard not to gleefully say I told you so. But...

And yes, I will dance an Irish Jig naked in the Mountain Farms Mall parking lot when the next domino falls: Planet Fitness.
I told you so!

The Deathstar

The Joys of competition
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Amherst Fitness, Inc
October 19, 2010

Dear Members:

It is with profound regret that a decision has been made to close the Amherst gym as of Wednesday, October 20.

Peter Earle whohas had full financial control and management control for the past 13 months, voluntarily resigned as of Friday, October 15. It became immediately apparent to his corporate partner, Joanne DeLong, that the business was left in such a condition that it could not survive without major changes -- such as dues increases and reduction in classes which, it is believed, would not be tolerated by the many members who have maintained their interest in and loyalty to the club -- some since the opening in December, 2003.

For those of you may be interested, we are offering the opportunity to continue at the Greenfield club (in the Home Depot plaza directly off Rte. 91, on the Mohawk Trail). You will have 6 weeks of free membership, including all of November. No enrollment fee will be collected for continued membership at $9.99 or $19.99 per month, upon signing a Greenfield contract. Anyone who has paid a year in full in Amherst will have the option to continue membership in Greenfield for the balance of their term or the unused portion of your deposit will be repaid to you. If you have been working with one of the Amherst trainers, there is a likelihood that they will be able to transfer to the Greenfield facility if they wish and continue training you there.

For those of you who are interested in this option, PLEASE BE PREPARED TO TAKE A COPY OF THIS EMAIL AND YOUR IDENTIFICATION KEY CARD WITH YOU TO GREENFIELD as your "ticket". For those who do not transfer to Greenfield we will reimburse you any unused portion of the dues already paid to Amherst as soon as possible.

We cannot say enough to thank you for your friendship and loyalty. This decision was not made lightly; and we are sincerely sorry for what we know is far more than a mere inconvenience to you.

Joanne DeLong

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Press Release:

The Leading Edge gym in Amherst is closing its doors as of October 20,2010 -- another victim of the economic downturn. A decrease in membership -- partly related to the opening of Planet Fitness and the Umass gym -- has resulted in an inability to meet financial obligations, despite the efforts that were made in May to address the situation.

The Leading Edge gym in Greenfield is a completely separate entity which is quite healthy and thriving, mostly because of the lower costs associated with operating a health club that is not full service (classes, childcare and the like) as Amherst was.

Amherst members are being given an opportunity to join the Greenfield gym and continue their training and fitness program. New equipment is being added to Greenfield over the next few months, making it even more inviting.

The Amherst gym opened in December, 2003, as a Gold's Gym. In 2008, the owners determined that it was more important to present themselves and be recognized in the community as a locally owned gym than just another cog in the corporate wheel. Initially, as The Leading Edge, membership continued to build and the business did well. A decision was made to open a second facility in Greenfield, following the trend to establish a discount gym. Simultaneously, upgrades in equipment and flooring were made in Amherst. Unfortunately, the economic downturn was happening at the same time, negatively impacting the ability of a full service club to thrive.

One of the owners, Peter Earle, who took over full management of the Amherst gym about a year ago, resigned from all active involvement in the gym on Friday, October 15. His corporate partner came in immediately and over the next few days determined that the gym had to close. "It is with deep regret that this decision is being made," declared Joanne DeLong, "knowing the terrible impact this will have on loyal and dedicated employees as well as the many, many wonderful members who have come to rely on our services."

Joanne Delong
Amherst Fitness, Inc
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Note to Virginia: Join Hampshire Athletic Club.

When will they ever learn?

So you have to figure that maybe--just maybe--the denizens of this humble abode at 88 Pelham Road on the border of Amherst/Pelham will get the message: don't invite over 300 Facebook friends (on a Sunday night no less), allow them to consume copious amounts of alcohol and then get belligerent with responding officers of the law--especially in the town of Amherst.

And why might they now get the message? Yeah, maybe because cars parked illegally around the humble abode were ticketed and a few towed; or that one "guest" was arrested for "disorderly conduct".

But mainly because the three responsible "tenants" were each issued two $300 tickets--one for "noise violation" and the other for being a "nuisance house". $600 each, times three. Ouch!

Bet that is more than next month's rent. Although in Amherst, maybe not--especially since this particular choice piece of real estate, valued at $292,700, sold last year to Onesta Properties LLC c/o Pipeline Properties Inc for $320,000.

And the mortgage payment on a 300-K fixed rate loan these days is about $1,800 month. Then add on the whopping Amherst property tax rate.

Pipeline Properties Inc does show on their extensive list of Amherst rental property a location nearby (6 bedrooms, but only 1.5 baths) at 109 Pelham road for a measly $3,000 per month.

Interestingly enough, Pipeline does post on their website under General Rules the following warning: "You live in a community and have neighbors, please be respectful of them, there is a noise ordinance in the each town and you can be fined for violating this. You are responsible and liable for the actions of your guests."

Let's hope the $1,800 in fines will drive home the point.