Members out of pocket after closure of Lifestyle Fitness clubs in Sydney’s inner west

Club members have been left upset and out of pocket after a company running fitness clubs in the inner western Sydney suburbs of Marrickille and Erskineville went into liquidation.

Prior to its closure, Lifestyle Fitness Australia had signed up people to 18 month memberships at its gyms, which were taken over by Fitness Playground in May. Fitness Playground  have advised the members that they will honour 12 months of these contracts, provided the members sign up to another year long contact.

Lifestyle Fitness member Kelly Bradshaw had purchased an 18 month membership at the Marrickville gym and said the new management had been really helpful, but she was upset that Lifestyle Fitness had “done a runner with everyone’s money”.

Bradshaw told News Ltd "about a month before this happened (Lifestyle Fitness Australia) did a huge membership drive, where they were selling 12 month memberships for $365.

"I don’t know how many people signed, but they would have known something was happening, it’s pretty horrible.

“I’m never paying upfront for anything ever again, because I’ve lost six months worth of gym membership and I have to pay another $500 and that’s at a reduced membership.”

A NSW Fair Trading spokesman said it understood that the Lifestyle Fitness members paid $299 for a 12 month membership, and if they signed this deal and paid in full, the members received a complimentary additional six months.

Under NSW law, the Fitness Services (Pre-Paid Fees) Act 2000, a fitness service cannot accept prepayment for a period that exceeds 12 months.

Fitness Playground purchased only the assets of the Marrickville and Erskineville clubs, with Millrange Pty Ltd, the liquidators for Lifestyle Fitness Australia appointed on 13th May.

A NSW Fair Trading spokesman advised “Fair Trading has been advised that there is no written agreement in place between Millrange Pty Ltd and Fitness Playground, which states that Fitness Playground are obliged to honour any Lifestyle Fitness Marrickville or Erskineville memberships.

“(As a result) Fitness Playground can set prices rates or offer any deal they think is appropriate for the services they provide.”

In February, Lifestyle Fitness closed its third Sydney location, in the southern suburb of Carlton, advising members that "if all goes well, we are looking at reopening mid April."

The gym did not reopen and another operator is apparently now looking at taking over the building lease.

Many members asked questions about the closire on social media, but the posts were later removed, while member Fleur Franich began a Facebook campaign to gather numbers in the hope of making a group complaint to NSW Fair Trading.

Franich stated "we believe that Lifestyle Fitness Gym are in breach of some of the conditions of Australian consumer law."

Consumer advocacy agency Choice has also reported on the closure of Lifestyle Fitness and provides advice to out-of-pocket members. Click here to visit the Choice website.

Lifestyle Fitness Australia's liquidator can be contacted through Andrew Whittingham on 02 9262 1944, E: awhittingham@rodgersreidy.com.au

Images courtesy of Facebook. Lower image shows Lifestyle Fitness Erskineville.

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