Fitness Gallery of Arizona, which filed for Ch. 7 bankruptcy liquidation Oct. 25, will auction its name and telephone number on Jan. 18.
Gallery owner Donnie Salum originally filed for Ch. 11 reorganization on Oct. 8 (see SNEWSÂ® story, Oct. 25, 2004, "Fitness Gallery Arizona to liquidate under Chapter 7 bankruptcy"). According to documents filed with the U.S. Bankruptcy Court, District of Arizona, the company's telephone number will be sold to Fitness Holdings International, operator of Busy Body Home Fitness for $2,000 "or (for) highest and best bid at auction." The name, Fitness Gallery, will also be sold to the highest and best auction bid, the document states.
In addition, two auctions of Fitness Gallery property, held in early December, raised $82,426 after about $16,000 in expenses including advertising and operation. All remaining fitness equipment as well as office and store equipment was sold, with the likes of top-end Star Trac and True treadmills selling for $150 to $500, Ivanko barbells selling for $10 each, and other equipment from StairMaster, TKO, TuffStuff and others reaping equally low prices by industry standards.
In the initial Ch. 11 case overridden by the Ch. 7 filing, the top unsecured creditor was True Fitness with an estimated $1.28 million in money due listed in the paperwork, although the debt was rumored to be much higher. Second on the list of the top 25 was Task Industries/TuffStuff, due $354,545.
For information on the Jan. 18 auction, contact Adam B. Nach at 602-258-6000.