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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

  • â–¸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