NASHUA – The owner of a longtime Nashua fitness club with roughly 1,300 members announced Monday that his gym will close by the end of the week because of financial difficulties.

IM Modern Fitness at 596 W. Hollis St. plans to shut its doors Friday. Owner Joshua Husson informed customers of the decision recently by email, writing that he didn’t anticipate the need to close down when he took over the health club a few years ago.

“Those of you who know me understand how much this club truly means to me and know what I have put into this business to try to make it a success,” he wrote. “I want you to know how difficult this decision is for me and that I have done everything I could to continue.”

Once known as the Nashua Athletic Club, the gym was established in 1978 and features one of the only full-size racquetball facilities in the region. The fitness complex holds cardiovascular areas, a strength conditioning and free weight area, a sports bar, saunas and jacuzzis.

The gym was featured in early 2012 as one of the region’s best health and wellness destinations by the Travel Channel because of its “dedication to fitness and personalization of the exercise experience.”

Husson, a longtime member, took ownership close to two years ago. At the time, he described plans grow the business, adding a group training area and continuing a lineup of 50 weekly fitness classes, including P90X, Zumba, Pilates, yoga and kickboxing.

But the building that houses the gym has since been put up for sale, and Husson indicated in an email that he can’t keep operating the gym under the current conditions. Husson wrote that he “does not have a secure lease in place,” and that his efforts to keep the business going – including trying to renegotiate the lease for a minimum of 12 months and asking an investor to purchase the building and partner with him – have fallen flat.

“We submitted an offer on the building (the only offer that’s been made) and this too has been rejected,” Husson wrote. “I also tried selling the business to another health club owner in hopes to keep the club going. We did receive an offer, but, unfortunately it was not enough to satisfy obligations to the previous owner.”

The decision to close the gym means that members who have already paid for long-term memberships will need to seek reimbursements from the owner. Husson also recently struck a deal with Gateway Hills Health Club that allows all former IM Modern Fitness customers to use the facilities at Gateway Hills for the duration of their memberships.

Gateway Hills owner Matt Dispensa said he contacted Husson several weeks earlier to help him create an “exit strategy” for the gym.

“Basically we’re helping people so they don’t lose money and still have a place to work out,” he said.

Under New Hampshire law, health clubs, weight loss clinics and martial arts businesses that accept prepaid memberships are required to post a bond to cover the cost of reimbursing customers if they close.

Senior Assistant New Hampshire Attorney General James Boffetti, who heads the Consumer Protection and Antitrust Bureau, said the state is working with IM Modern Fitness to determine the club’s outstanding liability and ensure a “soft landing” for customers.

“We’re going to continue to work with them to figure out if there were people who were members who don’t want to move to another club,” Boffetti said. “They should be able to get their money, and if the health club can’t pay for it, that’s what the bond is for.”

Boffetti said state statute requires clubs of the size of IM Modern Fitness to post a standard $50,000 bond to cover prepaid memberships.

Boffetti said he’s been assured that between the club’s assets and the bond held by the state, money is available for all existing customers who don’t chose to relocate to Gateway Hills to be reimbursed.

The gym was previously operated by Matt Chabot, who also owns Somerset Swim & Fitness Center at the Crowne Plaza Hotel. Chabot said previously that he sold the Nashua Athletic Club to Husson more than one year ago. The two clubs separated at that time, and new managers changed the name of the West Hollis Street facility to IM Modern Fitness.

City assessing records indicate Chabot manages a business entity that still owns the West Hollis Street building, identified as MSHC Enterprises LLC.

The land and building were put up for sale sometime in March. Real estate listings indicate NAI Norwood Group has been enlisted to market the property with an asking price of about $1.2 million.

The building was constructed in 1972, and is on about 4.4 acres, serviced by public water and sewer, according a real estate listing updated several weeks ago.

“The building includes racquetball courts, two training rooms, lounge, massage room, nursery, aerobic room and upgraded restrooms/locker rooms,” a real estate listing reads. “Access to the property is off a private road maintained by the abutting condo development and is surrounded by numerous roof tops. Great highway access.”

Chabot couldn’t be reached Monday for a comment about the decision to close the health club.

Dispensa said competitive pressure played a role.

“It’s a tough economy to be a gym owner,” he said.

With competitors offering memberships in the range of $10 per month, Dispensa said a facility that must maintain amenities such as a racquetball court is at a disadvantage. Husson attempted to lower membership rates to become more competitive, but the move depleted the revenue he needed to keep the club operating, Dispensa said. Husson also had difficulty getting financing to replace older equipment, he said.

“I think it’s kind of a sad day for members and a sad day, certainly, for Josh,” he said. “This place has been kind of a landmark here for many, many years and it’s unfortunate it can’t continue.”

The closure leaves racquetball players with fewer local options to practice the sport; outside of Nashua, Dispensa said, the closest courts are located at facilities in Merrimack, Manchester and Salem.

But for Joan Tallent and other longtime customers, the closure of the gym also means an end to the regular encounters she had over the years with other regular customers.

“It’s worth the ride,” she said. “The classes are great. The people are great.”

Tallent, of Groton, Mass., said she and her sons visited the gym over a period of 15 years.

“I’m just sorry they couldn’t swing it,” she said.

Jim Haddadin can be reached 594-6589 or jhaddadin@nashua
telegraph.com. Also, follow Haddadin on Twitter (@Telegraph_JimH).