A used gym equipment business in West Palm Beach, Fla., is getting a second wind after nearly a year in the black.
Owner Jason Hester said the business was shuttered due to a $10-million lawsuit filed by his wife, who said the company had failed to pay $40,000 in back wages to workers.
Hester told the Orlando Sentinel that his business received a $40-million judgment on the grounds that the company failed to file monthly payroll and did not report a loss.
He said his business is still doing well and hopes to reopen in two years.
“It was a very, very tough situation,” Hester, a 46-year-old father of four, told the Sentinel.
“We lost everything.
I can’t even imagine what it would be like for a family like mine.”
The lawsuit was filed in February by Florida State Attorney Angela Corey.
She alleged that the business failed to properly track employee benefits, failed to adequately supervise its workers, and failed to report a $400,000 shortfall in profits.
In February, Hester’s business received $2.6 million in a settlement with the state.
The company paid the state back about $10 million.
Hesters said he’s looking for another location.
“I’ve got another location that is up and running, but right now I’m down here in West Miami,” he said.
“They said they’re going to give me another 10 years.”