Madigan sues shuttered gym chain

Illinois Attorney General Lisa Madigan has filed a lawsuit against a gym chain with several suburban franchises for refusing to refund memberships and continuing to charge members after some suburban branches closed.

In the suit, Madigan complains that Colorado-based World Gym closed several locations in Elgin, Plainfield and Norridge, but continued to collect more than $100,000 in memberships fees after the gyms were closed in summer 2011. Madigan argues that members were not warned of the closures and were directed to other gym franchises, sometimes as far as 22 miles away.

The suit also names ASF International, a Colorado corporation that processed gym payments despite attempts by members to cancel their memberships. The suit also alleges World Gym turned over nearly 150 customers’ accounts to collection agencies over fees incurred after gyms closed.

In the suit, Madigan seeks to ban the gym from owning or operating a fitness center or business that accepts electronic payments from consumers in Illinois as well as restitution for affected clients and civil penalties.

World Gym Willowbrook filed for bankruptcy under Chapter 11 on May 22.

A phone number for the company headquarters has been disconnected.