BENTON COUNTY (KFSM) - The manager of World Gym owes more than $475,000 in late rent payments, according to a lawsuit filed in Benton County Circuit Court.
World Gym closed its doors this week at the Bentonville and Lowell facilities due to "unforeseen circumstances," according to a note found at the businesses.
One Bentonville World Gym is at 2614 SE J St., and the other is at 2103 SW Regional Airport Blvd. The Lowell location is at 1607 Empire St.
The note also says that the Fayetteville and Springdale locations are still open to all gym customers.
The Fayetteville World Gym is at 2035 College Ave., and the Springdale facility is at 866 S. 48th St.
"We are working fast to ensure to take care of all of our members," the note states.
A lawsuit filed on Feb. 17 in Benton County Circuit Court alleges that Rhett Garner D/B/A/ of World Gym owes Charlton Development Company several thousand dollars.
According to the lawsuit, the Bentonville and Lowell World Gym facilities are rented from Charlton Development Company at the following rates:
- Southeast J Street facility - $11,000 per month
- Southwest Regional Airport Boulevard facility - $15,000 per month
- Lowell facility - $45,000 per month
The lawsuit states that the following amounts are owed in late rent payments:
- Southeast J Street facility - $24,347
- Southwest Regional Airport Boulevard facility - $128,739
- Lowell facility - $323,336
On Dec. 16, 2004, Garner gave a man identified as Michael Charlton a $200,000 promissory note with six percent interest payable over 10 years to purchase equipment for World Gym, the lawsuit states.
As of 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 "refused to pay this sum (rent) despite repeated demands for payment." Garner has told Charlton he cannot fulfill his payment obligations, according to the lawsuit.
Charlton has requested that a receiver be appointed to manage the Benton County World Gym facilities and the court order Garner to not dispose of or transfer any assets from the World Gym locations, the lawsuit states.
On Monday (March 23), Garner filed an answer to the allegations brought against him in the February lawsuit, according to court records.
In his response, Garner admitted to all the complaints against him except for three. He partially denied that he said he couldn't perform his financial obligations and partially denied that it would be in the best interest of all his creditors if a receiver were appointed to manage the Benton County World Gym facilities, court documents state.
He fully denied that Charlton's companies would be "irreparably harmed" if Garner was allowed to transfer or dispose of assets before a receiver was appointed, according to court documents.
In closing, Garner's response to the lawsuit filed against him requests that the Benton County Circuit Court appoint a receiver for the Benton County World Gym facilities.
To read the full lawsuit, click here.
To read Garner's response to the lawsuit, click here.