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American Laser Skincare Attracts Consumer Iire

Author: Joel R. Glucksman

Date: December 23, 2014

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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.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

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