Amanda Bynes: 'I'm Doing Amazing' | Amanda Bynes

Amanda Bynes

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Amanda Bynes: 'I'm Doing Amazing'

Update Thursday September 20, 2012 08:30 AM EDT Originally posted Wednesday September 19, 2012 05:15 PM EDT

Amanda Bynes hasn't starred in a film since Easy A in 2010, but the actress has found herself making lots of headlines lately after questionable behavior and a series of run-ins with police.

The actress, 26, who has been charged with a DUI and two counts of hit-and-run, has been spotted acting increasingly erratically over the last several months, including "bizarre" behavior at her gym, according to a source, and being involved in a string of car accidents.

But none of these mishaps seem to have ruffled the former child star, who told PEOPLE when reached on the phone Wednesday, "I am doing amazing."

"I am retired as an actor. I am moving to New York to launch my career. I am going to do a fashion line," added Bynes, who was polite, respectful and upbeat on the phone. "I am not talking about being arrested for DUI because I don't drink, and I don't drink and drive. It is all false."

Although Bynes doesn't seem bothered by her legal drama, others who know her are, according to sources.

"People around Amanda are really concerned about her," a source, who has spent time with Bynes in recent months, tells PEOPLE in its new issue, on newsstands Friday. "She tells people she doesn't party or drink. She doesn't realize she has a problem."

And Bynes's friends are not the only ones worried. The star's parents have relocated from Texas to Los Angeles to be near her, according to TMZ.

Just this week, the former Nickelodeon star appeared "a mess," according to an onlooker who saw her working out at Equinox gym in West Hollywood on Tuesday evening.

During a spin class, the observer tells PEOPLE, "Amanda stopped to take her T-shirt off, revealing only a tiny, black, strapless push-up bra – not a sports bra."

Bynes, who spent the next few minutes adjusting her bra and hair extensions, then picked up her Louis Vuitton handbag and "pulled out her makeup kit and started reapplying her lipstick and eyeliner while looking at herself in the large mirror in front of her," the onlooker says.

After doing her makeup for approximately 10 minutes, Bynes put her shirt back on, picked up her things and left.

And Bynes's trouble doesn't stop there. On Wednesday her attorney, Richard Hutton, appeared in a Beverly Hills courthouse where the judge denied a $50,000 bail request from prosecutors for her April DUI arrest. At the hearing, however, the judge said if Bynes breaks any road rules going forward, a high but unspecified bail amount will be imposed, according to TMZ.

Bynes's lawyer did not return a request for comment.

With reporting by PERNILLA CEDENHEIM and JENNIFER GARCIA