More than a year after ProSpot Fitness did a final spiral that led to financial repossession, a last-minute bankruptcy liquidation filing and multiple business delays, the Busy Body/Gyms To Go team will become the exclusive North American distributor of the ProSpot line.
“A year later, we’ve finally reached an agreement,” Gyms To Go co-owner Carlos Vazquez told SNEWS®. “We’re anxious to get product back out there.”
In the end, Gyms To Go (GTG) bought all the truckloads full of hundreds of gyms, accessories and office equipment that it hauled away from ProSpot’s Lawrenceville, Ga., warehouse in early July 2009 to “store” for the company’s financial backer, Crossroads. Crossroads had taken over the then 11-year old strength equipment company that was founded by Michael Slawinski from its owners and investors. (Photo, below, shows founder Slawinski, right, with investors and football pros Travis Hall, left, and Jamal Anderson, center, at the 2007 Health & Fitness Business Expo.)
Fourteen months of bumps, hurdles and negotiations later, the final deals were signed Sept. 1. Included in the agreements, GTG:
>> acquired all the many hundreds of home gyms it trucked away in July 2009 under contract with Crossroads — including many with the patented self-spotting technology — plus benches, accessories and general office and electronics equipment, as well as all the intellectual property.
>> sold the intellectual property to ProSpot’s manufacturer Land America, owned by Michael Bruno.
>> took over the exclusive North American distributorship for the ProSpot line under a Florida LLC called Fitness World.
Financial terms were not revealed.
As a Land America company, Vazquez said ProSpot (www.prospotfitness.com) will be exhibiting alongside other Land America companies, including StairMaster and Star Trac, in a booth at the coming Health & Fitness Business Show in Las Vegas.
“Land America will continue to manufacture the equipment,” he said, “plus, we’ll be purchasing gyms from its inventory.” Land America had stopped delivering to ProSpot and claimed it was owed $1.2 million in financial statements, excluding collateral, filed with the July 2009 bankruptcy. Crossroads claimed $550,000 after collateral.
For now, Fitness World will be selling the ProSpot Fusion line, although it does have some inventory of the company cardio equipment under the Ascension name and some remaining Legacy product. Those will be negotiated on a case-by-case basis, Vazquez said.
“Land America now will back the product and its warranty,” he added.
When ProSpot began failing, Vazquez said his company wanted to take it over.
“We believed in the product,” he said. “We thought we could put ProSpot back on the map.”
But with the delays and maneuverings (click here to see a Nov. 6, 2009, SNEWS story, “ProSpot ownership back to its investor after bankruptcy stalled deal”), the deal began to change and was then stalled when Land America owner Michael Bruno had other business to take over. (Click here to see a July 7, 2010, SNEWS story, “Michael Bruno, owner of Land America, acquires controlling interest in Star Trac.”)
“We’ll be working very closely with Land America,” Vazquez added.
The ProSpot distributorship joins not only the specialty retail and commercial dealer business run by the Busy Body/Gyms To Go team (www.gymstogo.com), but also a more recent foray into the health club business (www.busybodyfitnesscenters.com) where a second and third gym are now pending.
For more information about the ProSpot line, contact Vazquez at Carlos@gymstogo.com.