The owner of the Gold’s Gym franchise in Bend is going through bankruptcy proceedings, while a competing gym is set to open in its former location in a few days.

In July, Christopher Hayes, the owner of Bend Gold’s Gym filed for Chapter 13 bankruptcy. Under Chapter 13, individuals create a plan to repay creditors with future income over a three- to five-year period, according to the Dictionary of Finance and Investment Terms. After payments have been made under the plan, the individual is discharged from paying the rest of the debts.

According to court records, 29 creditors have filed claims against Hayes for amounts totaling nearly $466,000.

Among the creditors are the Internal Revenue Service, which has filed a claim against Hayes for $189,884; the Oregon Employment Department, which claims Hayes owes it $7,615; and the Oregon Department of Consumer and Business Services, which is seeking $12,523.

Deschutes County has a lien against the gym’s equipment because Hayes failed to pay more than $3,000 in property taxes to the county, according to Laurie Craghead, Deschutes County assistant legal counsel.

Hayes did not return messages left at his place of work throughout the day on Friday.

Under the payment plan filed with the court, Hayes would only be required to repay a handful of his secured creditors.

The other, unsecured creditors would get nothing under the plan.

Hayes’ Portland-based attorney, Ted Troutman, said Hayes has been making monthly payments of $2,000 to a bankruptcy trustee and is waiting for the district of Oregon bankruptcy court to approve his reorganization plan.

Under the payment plan filed in October, Hayes’ payments will increase to $3,000 each month during the second year and up to $4,000 a month during the third year of payment.

Troutman said the bankruptcy shouldn’t affect Gold’s Gym or its members.

”Most of the problems have been worked out with the creditors and the IRS,” Troutman said. ”It shouldn’t affect (his business) at all,” Troutman said.

A lawyer representing one of Hayes’ creditors disagreed, saying the amount of debt in relation to the gym’s income is a problem.

”Right now, it doesn’t look hopeful for that business,” said Bend attorney, Jonathan Basham. ”They are going to need some kind of infusion of capital to make this work. So far, they haven’t been able to put that together.”

According to court records, Gold’s Gym has an estimated average net monthly income of $1,275.

In addition to the financial problems, Aspire Health and Fitness is just a few days away from opening a gym on Bend’s east side at Twin Knolls Drive. The new fitness center will go into the same space Gold’s Gym abruptly vacated in September.

”(Members at Gold’s Gym) are there just waiting for Aspire to open,” said John Maloney, who is a Gold’s member and has also filed three claims against Hayes totaling more than $62,000. ”Some people have left their memberships a year early.”

Maloney said, Gold’s new location on Highway 97, across from Fred Meyer, is not ”at 100 percent yet.”

Maintenance work needs to be done throughout the facility, a front counter needs to be installed and mirrors still have to be put up, Maloney said.

This isn’t the first time a local fitness center has run into financial troubles.

In October 2002, Bend Fitness closed without warning after one of the partners repossessed the club’s exercise equipment in a late-night raid.

In January of 2002, World Gym in the Old Mill District filed for bankruptcy, closing its doors without refunding membership funds.

Kristy Hessman can be reached at 541-383-0350 or khessman@bendbulletin.com.