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đź”´ PRIVATE EQUITY OWNED
Massage Envy
spa & wellness · Scottsdale, AZ
PE Firm
Roark Capital
Year Acquired
2012
“180+ sexual assault reports, and corporate's top priority was protecting the brand.”
The PE Playbook
- •BuzzFeed's 2017 investigation revealed 180+ people filed sexual assault lawsuits, police reports, and complaints
- •Internal risk management guide instructed franchisees to 'avoid police and keep membership' — prioritizing brand over reporting
- •Corporate maintained a centralized database of assault complaints handled internally rather than reported to authorities
- •Lawsuits named Roark Capital directly, alleging the PE firm's ownership structure enabled repeat offenders to remain employed
Since the Acquisition
- ▸More than 180 people filed sexual assault lawsuits, police reports, and complaints against Massage Envy spas — dozens reported assault by massage therapists
- â–¸An internal risk management guide instructed franchisees to 'avoid police and keep membership' when assaults were reported
- â–¸Accused therapists remained employed even after multiple women reported inappropriate conduct
- â–¸Massage Envy continued charging membership fees to at least one assault victim for two months after she told management she'd never return