Unpaid Staff and Shuttered Studios: The Chaos Unleashed by Mitch Brown’s Takeover of High-End Fitness Franchises

Employees at Pure Barre, CycleBar, Row House, and other upscale fitness studios face financial turmoil as Mitch Brown’s ownership leads to missed paychecks and sudden closures.

In the world of boutique fitness, where dimly lit studios and upscale clientele converge, a storm is brewing. The tranquil paradise of several Pure Barre, CycleBar, Row House, and other high-end fitness studios has been shattered by a series of unexpected closures. The culprit behind this chaos is Mitch Brown, an entrepreneur and franchisee who recently acquired ownership of 68 studio locations from the franchisor, Xponential Fitness. Since Brown’s takeover, employees have been left without pay, forced to make difficult choices between working for free or walking away. This article delves into the details of this unfolding crisis, exploring the impact on staff, the bizarre behavior of the new owner, and the consequences for the beloved fitness brands.

Paycheck Problems and Unanswered Calls

The employees of the acquired fitness studios have been grappling with unpaid wages since late October. Many reported inaccurate paycheck amounts in the weeks leading up to the missed payments, resulting in significant financial losses. Despite their desperate pleas for assistance, staff members claim their calls for help have gone unanswered, except for a peculiar email from Brown and rambling Zoom calls that left them bewildered. Brown’s November 8 email, in which he took responsibility for the missed paychecks but failed to provide a concrete solution, only added to the frustration and sense of betrayal among the employees.

A Pattern of Mismanagement and Incoherent Communication

Former and current staff members reveal a pattern of mismanagement and erratic behavior on Brown’s part. During Zoom calls with studio managers, Brown’s behavior was described as erratic and nonsensical. In one call obtained by Business Insider, Brown even spoke about drinking his own urine. Employees recount instances of Brown’s rambling speeches that lacked substance or clear direction. The collapse of communication and the failure to address the pressing issues facing the studios left employees feeling disheartened and disillusioned.

Broken Promises and Financial Struggles

Brown’s acquisition of the studios from Xponential Fitness raised questions about the financial viability of the venture. Former employees who worked directly with Brown revealed that he acquired the studios at a minimal cost, with some suggesting that franchise owners sold their studios back to Xponential Fitness for as little as $1. Brown promised to secure funding to turn the studios around, but the inability to meet payroll obligations indicated significant financial struggles. The collapse of funding options and Brown’s sporadic availability further exacerbated the financial crisis.

The Fallout: Closed Doors and Lost Community

As a result of the ongoing turmoil, many studios have closed their doors, leaving clients and employees devastated. The sudden closures have left employees unable to explain the reasons behind the shutdowns, causing confusion and disappointment among loyal clients. The collapse of the studios has not only resulted in financial uncertainty but has also shattered the sense of community that these fitness brands had built over the years. Instructors and managers, who had formed close relationships with clients, were torn between teaching classes without pay or abandoning their beloved studios.

Seeking Accountability and Rebuilding Trust

Employees affected by the chaos have taken legal action to recover their unpaid wages, hoping that public exposure will lead to change and accountability. While the blame primarily falls on Brown and MD Professional Holdings for mishandling the transition, some employees feel that Xponential Fitness should take responsibility for selling off the studios and washing their hands of the situation. The long-term damage to the reputation of Pure Barre, CycleBar, Row House, and other brands is a significant concern for both employees and clients.

Conclusion:

The turmoil unleashed by Mitch Brown’s takeover of high-end fitness franchises has left a trail of unpaid staff and shuttered studios. The financial struggles faced by employees, coupled with Brown’s erratic behavior and poor communication, have shattered the sense of trust and community that these fitness brands once embodied. As employees seek accountability and legal recourse, the long-term impact on the reputation of these beloved fitness studios remains uncertain. The fallout from this crisis serves as a cautionary tale, reminding us of the importance of responsible ownership and the need for transparency and support in the world of boutique fitness.


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