Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
American Laser Skincare Attracts Consumer Iire
Author: Joel R. Glucksman
Date: December 23, 2014
Key Contacts
Back
American Laser Skincare has gone out of business, leaving many customers who had already paid for or received service in a difficult situation.
The Farmington Hills-based company filed for protection under Chapter 7 of the bankruptcy law recently, listing assets of less than $50,000 and debts in excess of $100 million, according to documents filed in U.S. Bankruptcy Court and cited by Crain’s Detroit Business.
“We are sorry to announce that all of our clinics have been closed,” the company said on its website. “We too are disappointed in the sudden developments and regret the impact that it is having on our loyal clients, valued employees and business partners.”
According to The Wall Street Journal, the company’s business strategy relied heavily on the financing of beauty treatments and less on the clear profit margins. The news source cited an American Laser Skincare credit agreement that indicated that a 24.99 percent interest rate kicked in if the customer’s bill wasn’t paid in full in three years.
“American Laser wasn’t selling a service. It was basically in the financing business,” a lawyer unconnected with the case told the Journal.
Many customers took to the company’s Facebook page to complain about the sudden closure. As recently as Nov. 14, the company had posted an ad promoting special Black Friday pricing.
“When will I get reimbursed for the package that I purchased and never used?” asked one dissatisfied customer. Another lamented driving 45 minutes for her appointment on Dec. 16, complaining that no one from the company informed her of its closure weeks ago.
One of the company’s “financing business partners,” Comenity Capital Bank, issued a statement saying that it is working with the company’s former clients, according to the Journal. Those who already received services will pay Comenity, and those who are being asked to pay for services not received should write to Comenity to receive a credit. It isn’t clear what those who already paid for services not received should do.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.