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Gold's Gym buys out Rando's

October 27, 1997

By DON AINES

Staff Writer, Martinsburg

MARTINSBURG, W.Va. - In July, Rando Enterprises had just opened a new fitness center in Martinsburg and a company official was talking about expanding into New York and Virginia.

Now Rando's is out of business and Gold's Gym and Aerobics Center has taken over.

Rando's Fitness Center on Maugans Avenue in Hagerstown and the Martinsburg Center on North Queen Street have been purchased from Randall J. "Rando" Coyle by Fitness Components Limited Liability Partnership, Gold's Gym and Aerobics Center of Arlington, Va.

The group of investors operates or is building 11 other Gold's Gyms in Washington, D.C., Virginia and Maryland, according to Drew Steichen.

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Steichen is the general manager of the Capitol Hill Gold's, but has been brought in to assist in the transfer of the Hagerstown facility and reopening of the Martinsburg gym, which was closed by a court order on Sept. 19.

"We're going to honor all existing memberships and agreements," Steichen said Monday.

He said the approximately 3,000 members at the Hagerstown Rando's will face no transfer fees or charges as a result of the sale.

Steichen said one of the partners, John Link, will serve as the general manager of the Hagerstown gym. He said the transfer took effect Thursday. "He basically came in and kept the club from closing down," he said of Link.

"Absolutely they will be honored," Steichen said of the 1,600 memberships at the Martinsburg Rando's. He said once some legal hurdles are cleared, the Martinsburg center will reopen as a Gold's Gym.

"Within a week or so, we expect to get the go-ahead on Martinsburg," Steichen said. He said he did not know the terms of the sale for the businesses, only that, "Rando basically went out of business."

Coyle could not be reached for comment on Monday.

Court records indicate Coyle has been embroiled in litigation in West Virginia and Maryland and piling up judgments and liens totaling hundreds of thousands of dollars.

Coyle, his wife, Sonja, and Ronald W. Coyle and the companies, Rando's Fitness Center Inc., Rando Enterprises Inc., Coyle Enterprises Inc. and Coyle Edmund Inc. have more than $1 million in state and federal tax liens and other judgments filed against them in Washington County Circuit Court. The judgments and liens date back to 1991, according to court records.

According to the Berkeley County Clerk's Office, Rando Enterprises has had $12,839.25 in West Virginia state tax liens filed against the business since 1995. For the 1994 tax year, there was a federal income tax lien of $37,586.79, according to court records.

Judgments against the company and the Coyles include $40,491.83 to Jefferson Security Bank of Shepherdstown; $10,821.71 to Middlesex Square Associates for the lease on a tanning salon; $18,742.50 to Jefferson Asphalt; and $7,605.68 to American National Mortgage Co. of Glen Burnie, Md., courthouse records indicated.

Mechanics liens against the company for work not paid for include $66,000 to Berkeley Paint Products, $50,000 to AJAC Construction Co. and $1,479.57 to Grove's Cleaning Service, according to allegations contained in courthouse records.

At 11 a.m. today, a trustee's sale is scheduled for two properties connected to the Coyles. One was a house on Circle Drive sold to Rando Enterprises in 1995 that was valued then at $73,000, according to the deed. The other was a property on Paynes Ford Road the Coyles put up for a loan of $238,084.40 last year, according to the deed of trust in the courthouse. Eleanor A. Pritts is the lien holder on the two properties, according to court records.

Rando Enterprises and the Coyles are also involved in pending litigation with GBR North Queen Street Limited Partnership of Delaware. That company owns the former Nichols building that became a Rando's Fitness Center in July and closed down Sept. 19. According to the suit filed Aug. 22, GBR alleges that Rando's defaulted on its lease.

Pikeside Retail Center Limited Partnership, the owner of the shopping center where the Martinsburg Rando's was formerly located, is also suing for back rent and late charges at Pikeside Plaza.

Last week the Berkeley County Sheriff's Office sold a car and other belongings of Randall and Sonja Coyle to satisfy a Washington County Circuit Court judgment in favor of North Village Development Co. Inc. of Hagerstown. The judgment was for more than $40,000, but the sale raised less than $18,000.

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