Instead, [Bill Crawford] said in an interview, he has told members of The Reformatory Health Club on Lankershim Boulevard that their spa is in bad financial shape. With the approval of an impromptu committee of a dozen club members, who have paid anywhere from $39 to $109 for a one-year membership, Crawford has begun collecting an additional $2-per-visit use fee to keep the facility afloat.

According to Crawford and [David Cirotto], Crawford simply agreed to pay the $24,000 remaining on Cirotto's purchase agreement with Exercise Express. He also inherited responsibility for lease payments to the building's owner and to the firm that provided exercise equipment. In addition, Crawford agreed to assume a $10,000 debt on the facility, which he said was mostly back rent payments. Bankruptcy court documents confirmed the nonpayment of rent.

To kick off his new payment plan and raise some quick cash, Crawford and the membership committee Sunday staged an aerobics fund-raiser with a live band, food booths, and health and nutrition speakers. Although committee members hoped the event would bring in more than $2,000 to fund a delinquent payroll for the club's staff, Crawford said the party only attracted about 200 participants and barely broke even.