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
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
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.