Bankruptcy latest twist in gym saga

"I put a guarantee on a property 10 years ago and it turned out to be a dumb thing to do." Gregory Charles Peters

The former director of troubled gym franchise Configure Express has been declared bankrupt.

Gregory Charles Peters stood down as a director of the women’s gym in October last year, and handed the reins over to his partner.

At the same time, the company was caught up in legal action following the closure of three franchises in the North Island.

Four months later, legal proceedings were filed against Peters. He was declared bankrupt in the High Court at Auckland on February 16.

Yesterday, he said the proceedings were linked to a guarantee on an Auckland property.

‘‘I put a guarantee on a property 10 years ago and it turned out to be a dumb thing to do,’’ Peters said.

‘‘There is nothing I can do about it. It’s just unfortunate. It doesn’t impact Configure Express, because I am no longer a director, it just impacts my life.’’

At the time Peters resigned as director, a number of franchises were closing or splitting from the national franchise.

To date, five gyms – in Auckland, Hamilton, and Wellington – have closed. Four Wellington gyms broke away and rebranded as Revive Fitness.

Members reacted to the closures by venting their frustration onlineclaiming they had been left in limbo, had not received refunds, and had been unable to contact staff at head office.

Following Peters’ resignation, the company started legal action against some gym owners, claiming they had breached franchise agreements.