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.