Report: Cheetah Gyms in default of loans, could be sold by bank
Cheetah Gym. Credit: sassnasty / Flickr
According to a report in today’s Real Estate Daily from Crain’s Chicago, the ownership behind Cheetah Gyms has defaulted on a $3.9 million loan for a second time. Reza Toulabi owns the three Cheetah Gyms located in the Andersonville, Edgewater and Bucktown neighborhoods, along with several real estate properties and Reza’s restaurants.
The Crain’s report states: “Several entities affiliated with Mr. Toulabi…have defaulted for the second time on a $3.9 million loan controlled by MB Financial Inc., according to a complaint the Chicago-based bank recently filed in Cook County Circuit Court. Mr. Toulabi and the other borrowers failed to pay off the loan when it came due in April, violating a forbearance agreement the bank and Mr. Toulabi struck in 2011, the suit says. Mr. Toulabi’s gym holding company, Cheetah Gyms Inc., is named as the sole defendant in the complaint.” The article goes on to say that MB Financial is now asking a judge to dissolve the gym company and sell off its assets.
Cheetah Gyms also saw trouble in 2007 under a previous owner, when gym goers arrived at the facilities to find it shuttered with a note on the door, accusing employees of stealing a ton of money which forced him to miss payroll and ultimately close. However recently the gym chain seemed to have some wind in it’s sail as it was named one of the “Best Gyms Under $80” in the city by Chicago Magazine and it’s Andersonville location was recently named Service Organization of the Year at the Andersonville Honors Gala.
