Richmond BizSense reported Thursday that SportsQuest has been sued by the state of Virginia for misleading marketing practices related to the sale of memberships to a fitness club that isn’t yet built.
Although SportsQuest founder Steve Burton did not respond to calls from BizSense seeking comment, he put up a blog post Wednesday to address the suit and give an update on the business, including stating that parts of SportsQuest are up for sale.
In response to the suit, Burton wrote:
“It has also come to our attention that that Commonwealth has filed a complaint against SportsQuest related to our member fitness center. While we have experienced delays related to the economy and pursuit of the east campus, we are confident that we will resolve any issues through our on-going discussions.”
The blog post also said that various elements of SportsQuest are being split into separate businesses and that some are for sale:
“Two groups are now engaged in separate acquisitions of two of the businesses: the Academy and Membership. Its seems likely that these transactions will close in the weeks ahead. The net result will be a more sharply focused business with new ownership. We are also actively engaged in discussions with three parties who have a strong interest in working collectively to acquire the Events business and drive this forward. This process will likely take a few months to bring to a close given the larger overall scope of the transaction.”