East Greenwich gym allowed to reopen

EAST GREENWICH, R.I. (WPRI) — The Gold’s Gym in East Greenwich will be back open Wednesday, just one day after a Superior Court judge ordered the financially strapped business closed for good.

Judge Brian Stern ordered the business closed and liquidated as of 11 p.m. Tuesday over concerns it did not have enough cash on hand to pay operating costs and meet payroll. However, the gym received a temporary reprieve after the landlord Wednesday agreed to waive rent for the month of January.

The gym remains under the control of a receiver, who said the gym will now be able to meet its $28,000 payroll.

He said the staff is returning to work Wednesday and an email blast will be sent to members to apologize and inform them the gym is reopening. Many members and staff found out about the issue Tuesday and said they were caught off guard.

“I literally was teaching a class and I got pulled out of the room,” said fitness instructor Jackie DelGizzo. “When I heard this last night, I’m like ‘are you kidding me?!’ I need to buy Christmas presents for my three kids.”

During a hearing Wednesday morning, the owners and receiver said they’re confident they’ll be able to find a buyer for the location by Jan. 31, 2016.

While the attorney for one of the owners wouldn’t elaborate on what led to the gym’s financial issues. Judge Stern said there was a number of debts, including unpaid rent.

Stern said the future of the club will depend on the willingness of its membership and staff to remain at the location.

Barry Field, one of the owners of the East Greenwich gym, also owns the Gold’s Gym in Pawtucket.

Field’s attorney, Bruce Gladstone, told Eyewitness News that location is owned by a separate corporation that is not in receivership and remains financially sound.

“We do not want members of the Pawtucket gym to be in any way concerned,” said Gladstone. “That gym is operating. It is in good health and it is going to continue to operate.”

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