FAYETTEVILLE (KFSM) The supervisor of World Fitness center, who had a claim submitted against him alleging he owed more than $475,000 in late rent, has actually submitted for bankruptcy, according to court records.
Rhett Garner D/B/A/ of World Fitness center submittedapplied for Chapter 7 Bankruptcy on March 25 in US Bankruptcy Court for the Western District of Arkansas in Fayetteville, court files state.
Garner alerted the Benton County Circuit Court of his bankruptcy filing on March 31, asking for that the court honor an automatic stay gotten in by United States Bankruptcy Court for the Western District of Arkansas.
In the majority of instances, the filing of a bankruptcy case automatically remains specific collection and other actions versus a debtor and the debtors apartment, court documents state.
Under bankruptcy laws, if somebody tries to collect a financial obligation or take other action against an individual who has actually submittedapplied for bankruptcy, that individual attempting to collect the debt might be punished.
A suit submitted on Feb. 17 in Benton County Circuit Court alleges that Garner owes Charlton Development Business a number of thousand dollars.
According to the lawsuit, the Bentonville and Lowell World Fitness center facilities are leased from Charlton Development Business at the following rates:
- Southeast J Street center – $11,000 each month
- Southwest Regional Airport Boulevard facility – $15,000 per month
- Lowell center – $45,000 per month
The suit mentions that the following amounts are owed in late rent payments:
- Southeast J Street facility – $24,347
- Southwest Regional Airport Boulevard facility – $128,739
- Lowell center – $323,336
On Dec. 16, 2004, Garner provided a man identified as Michael Charlton a $200,000 promissory note with 6 percent interest payable over 10 years to purchase equipment for World Fitness center, the claim states.
Since Feb. 16, the promissory note is in default, and $54,644 is due on it, according to Charlton.
Charlton also states in the lawsuit that Garner has “declined to pay this sum (lease) regardless of duplicated demands for payment.” Garner has told Charlton he can not fulfill his payment obligations, according to the suit.
World Gym closed its doors on March 24 at the Bentonville and Lowell centers.