Pure Weight Loss Bankruptcy Update

Interesting article from the Real Deal in Syracuse, NY.

Did any of you get the “accidental” letter mailed to them mentioned in this post?

Syracuse, New York (WSYR-TV) - If you were a member of the now-bankrupt Pure Weight Loss, you may have recently received a notice from the bankruptcy court. It’s a little confusing, and you may be wondering whether it means the case is over.

Here’s The Real Deal on what the letter means.

We spoke with the bankruptcy trustee, and he says everything is still being worked out, and that letter was actually sent by mistake.

The letter makes it seem like there was a resolution to the bankruptcy case and basically, you’re out of luck. But the trustee tells us that’s not the case. There was recently an auction to sell off all of Pure Weight Loss’s assets. This letter is about that auction, and should have never even been sent out to all the creditors.

The bankruptcy trustee says over 8,500 people have filed claims with the court looking for a refund.

There is some money in the case, but nowhere near enough to pay everyone.

And of course, secured creditors - like banks - get paid off first. The trustee is hoping they’ll be enough left after that to give customers at least something back, but not everyone may get money back, and if you do it’ll likely be far less than what you’re actually owed.

Also, don’t expect a check in your mailbox anytime soon. In bankruptcy cases like this one, it can take three to five years to settle and close the case.

LA Weight Loss Tosses Client Files in Dumpster

LA Weight Loss customers are up in arms over the closings of two North Carolina centers, the abandonment of prepaid members, and the discovery of member records dumped carelessly in the dumpster. Source:
Follow-up on LA Weightloss closing without warning

Last night we told you about a local weight loss franchise that closed without warning.

Turns out it is not the only branch in the region to abruptly shut down. A branch in Jacksonville also closed this past week.

Clients were referred there after the nearby New Bern branch closed a few months ago.

Clients of the Wilmington location say the doors have been locked for a week.

Since we broke the story yesterday, a number of people called and e-mailed the newsroom to share their stories. Most said they are now out hundreds of dollars.

Yesterday, we found files with clients’ personal information and social security numbers tossed in the dumpster outside.

Attorney David Ennis said, “What was done was done improperly, it was done illegally and I certainly think people should take measures to make sure this is remedied for them, and that it sends a message to the public or to private business owners.”

Ennis says he is helping people in the area figure out how to get their money back.

We also found out from former employees today that the Wilmington branch was owned by Kelly Walsh of Rhode Island and at least two other partners from Nashville Tennessee.

WWAY has been trying to contact all three business owners for the past two days. None have returned phone calls.

Calls to the L.A. Weight Loss corporate office have also gone unreturned.

LA Weight Loss Center Closings Rumored (UPDATED)

Reader Rita Wilson posted that LA Weight Loss Centers are suffering the same fate as their predecessor, Pure Weight Loss. She writes:

They are closing more LA Weight Loss Centers which are managed by the LA Weight Loss Franchise Companies Corporate office (Under the Name of LATO- or LA Take Over).

By July 11th, the following centers will be closing in Kentucky:

*Elizabethtown, KY
*Louisville/Hurstbourne, KY
*Springhurst, KY

They are also planning closings in other areas of the country, including:
*Butte, NE
*Lincoln, NE
*Bozeman, MT

Beware! If products are owed to you, get into the center immediately and request refunds!

Rita

July 22, 2008 at 6:08 PM Bella stated:

La Weight Loss is closing in Evansville, Vincennes, and Terra Haute….Get products they will be working m,w,f only next 2 wks….- bella

Susan added Jul 23, 2008 at 6:56 pm:

I live in Colorado and from what I have been told all the centers in the state will be closed by the end of August I signed up for something called LA to go where supposedly someone from corporate will call me 3 times a week and I can pay for product and they will ship it to me free of charge.. I am beginning to wonder about that after reading all the posts. This is a real bummer as it was really working for me. - susan

Claire wrote Jul 24, 3:43 PM:

Chattanooga, TN will be closing by the end of July.

(Closed)

Joan Cox wrote:

Boise, ID
Nampa, ID

WHAT HAVE YOU HEARD?

La Weight Loss ex-employee warns of closings. Don’t prepay!

“I also am an ex-employee of LA Weight Loss. I do not know when this company is going under but if they are not I will be VERY Shocked!

I for one loved working for LAWL and will miss helping my clients but felt completely lied to all of the time by our owners! As part of our jobs we would sell large bulks of product that the clients would pick up at their weekly visits, this could run up into the $1000.00’s easily! No longer knowing if you are unknowingly lying to your clients about product coming in, whether they would receive refunds and rebates that they were waiting for, whether they would ever receive all of the product that they had invested in made many of us lose our sleep at night!

I believe that the plan works and have saw it change so many peoples lives, however to much pushy sales and greed has run this company in the ground! So Very Sad! I am just waiting to hear any day that LA Weight Loss is no more! : (” Anonymous Employee

LA Weight Loss rip-off, center closed, no refund, should be sued

“I paid A LOT for my LA WEIGHT LOSS MEMBERSHIP and had a few months left. I had some stressors and stopped going for a few months, then decided to get jump started now that summer is here. Went to the store, and was shocked to see there was no sign, the store was empty, no sign on the door, and then I called and the phone rang and there was not even a message! And to think that last week I received a card in the mail to “Come back to LA for free”! I know the stores in Illinois closed, and I am over the border in Wisconsin. Right before I left, the store hours changed twice, and corporate was in there. I had a bad feeling about it and that also made me stop going. I am mad,feel like I got taken for a ride, and wonder how many may have just joined and got ripped off! These people need to be sued!”
Kim