Hauppauge sports club - Chapter 11 (credit, to buy, bankruptcy)

[samnyc]

Hi All,

In April, I paid for the full year membership at the Hauppauge Sports gym. Now they are going bankruptcy. The lady there told me no refunds. Gym is closing in two weeks.

Just curious if there is any thing I can to get my money back.

Thanks.

[dman72]

Originally Posted by samnyc

Hi All,

In April, I paid for the full year membership at the Hauppauge Sports gym. Now they are going bankruptcy. The lady there told me no refunds. Gym is closing in two weeks.

Just curious if there is any thing I can to get my money back.

Thanks.

Normally places like that are entitled to keep money in escrow. Maybe check with the Better Business Bureau.

[Chrisk327]

essentially you're an unsecured creditor of the gym. generally unsecured creditors get very little in bankruptcies as there are secured creditors who's rights are before theirs.

I wouldn't count on getting your money back, but you might get some at a much later date.

thats the downside of paying for anything significantly in advance.

[lifetimeliguy]

Originally Posted by samnyc

Hi All,

In April, I paid for the full year membership at the Hauppauge Sports gym. Now they are going bankruptcy. The lady there told me no refunds. Gym is closing in two weeks.

Just curious if there is any thing I can to get my money back.

Thanks.

How did you find this out ?? I have been a member for seven years - was there last night and saw/heard nothing from the people behind the desk !!!

[samnyc]

Every one was talking about it in the gym. I spoke to Donna, she is the manager in the gym.

[jpg71]

Originally Posted by Chrisk327

essentially you're an unsecured creditor of the gym. generally unsecured creditors get very little in bankruptcies as there are secured creditors who's rights are before theirs.

I wouldn't count on getting your money back, but you might get some at a much later date.

thats the downside of paying for anything significantly in advance.

This is exactly right. That money is gone, as there is most likely a long line of creditors ahead of you in the bankruptcy proceedings that need to get paid, and any assets they still have are likely not going to be enough to pay that debt down.

The only way I see this working out for the members is if another club came in and offered to buy their members/equipment/facilities, and extend their membership to the existing Hauppague members.