Pure Weight Loss to Pay $700,000 to Former Members
Here is the press release issued by the office of PA Attorney General Tom Corbett December 12, 2008:
Attorney General Corbett announces $700,000 consumer protection agreement with Pure Weight Loss Inc.
HARRISBURG - Attorney General Tom Corbett today announced a more than $700,000 consumer protection agreement with Pennsylvania-based Pure Weight Loss Inc. addressing more than 3,500 complaints involving non-delivery of weight loss products or services to consumers from Pennsylvania and several other states.
Corbett said a consent decree has been reached with Pure Weight Loss, Inc., of Horsham, PA (formerly known as L.A. Weight Loss Centers, Inc.), along with the company’s owner and president, Vahan Karian.
Corbett said the agreement requires the payment of $500,000 to the Pennsylvania Office of Attorney General, for distribution to consumers who pre-paid for products and services that were not delivered and who filed valid complaints with the Attorney General’s Health Care Section.
Additionally, the agreement sets aside $200,000 in a secure fund, which will be used to provide restitution to consumers who filed claims in the U.S. Bankruptcy Court case involving Pure Weight Loss. Corbett said this money will be turned over to the Bankruptcy Trustee for distribution to consumers who have filed proofs of claim with the bankruptcy court.
Corbett explained that the Attorney General’s Health Care Section began receiving complaints about Pure Weight Loss in December 2007, shortly after the company announced plans to close more than 400 weight loss centers across the country. The company halted operations on January 4th, 2008, and filed for bankruptcy shortly after that, leaving thousands of consumers without access to weight loss products and services that they had pre-purchased.
Corbett said that the majority of the consumers who contacted the Attorney General’s Office had purchased contracts lasting a year or more, paying as much as $2,000 for “lite bars” and other food items that were never delivered. Following the closure announcement in December 2007, consumers were instructed by Pure Weight Loss to pick up products from their stores prior to January 4, 2008, or file a claim for refunds - but many consumers failed to receive either refunds or the products and services they had purchased.
Corbett said that in addition to the $700,000 payment from Karian and Pure Weight Loss to fund consumer restitution, the Pennsylvania Office of Attorney General is also working with authorities from the states of New York and Maryland to recover additional funds for consumers from those states.
Both New York and Maryland require weight loss centers to post security bonds intended to protect consumers against losses, and all complaints involving consumers from those states will be turned over to authorities in New York and Maryland as claims against those security bonds - allowing the remaining funds to be distributed to consumers from Pennsylvania and other states.
Corbett said that efforts are underway to verify all the consumer claims that have been filed with the Attorney General’s Health Care Section. Bank and credit card records are also being obtained to determine the exact amount of credit card charge-backs, stop-payment orders or partial refunds that may already have been paid to some consumers. Corbett said the final distribution amount for each consumer will be calculated when the review of that financial information is complete.
It is anticipated that partial refund distribution will begin in early 2009 for eligible consumers who have already filed complaints with the Attorney General’s Health Care Section.
Refund distribution for consumers who filed proofs of claim with the U.S. Bankruptcy Court will take place at the conclusion of the bankruptcy case involving Pure Weight Loss.
The consent agreement was filed in Commonwealth Court, in Harrisburg, Pennsylvania, by Deputy Attorney General Timothy E. Gates of the Attorney General’s Health Care Section.
LA Weight Loss Centers Close in Charlotte, NC
December 12, 2008 by admin · 3 Comments
LA Weight Loss Centers in Charlotte, NC closed abruptly this week, leaving some customers owed hundreds of dollars.
According to the Charlotte Observer:
Tom Bartholomy, president of the Better Business Bureau of the Southern Piedmont, said his office started receiving calls this morning about the closures. The owner of the Charlotte-area centers, which are operated as a franchise, could not immediately be reached.
This morning, a sign posted on the door of the LA Weight Loss Center on Baxter Street near uptown Charlotte read: “Due to the current economic conditions and the notice from our Franchisor that they are ceasing operations we have no choice but to close our Charlotte and surrounding area centers.”
It said the company would contact as many of its clients as possible “to deliver the products owed to you,” and left an email address, customerservice@laweightlossnc.com.
In a recent comment left here, Kelly Clark, who says she is a former employee, reports:
Update on LA Weight Loss NC Franchise The following centers will be closing effective 12/11/08.
Rock Hill, SC
Hickory, NC
Pineville, NC
Mooresville, NC
Gastonia, NC
University, NC
Uptown, NC
Huntersville, NC
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LA WEIGHT LOSS: More Wisconsin LA Weight Loss Centers Closing
November 23, 2008 by admin · 2 Comments
The widespread closings of LA Weight Loss centers continue in Wisconsin, as elsewhere. The local Inches-A-Weigh franchise is offering a discount to LA Weight Loss members left stranded by the closings. According to the Appleton Post-Crescent:
“LA Weight Loss will close its two locations here next Wednesday. They are at 1005 Mutual Way in Grand Chute, near Wal-Mart and N474 Eisenhower Drive, Buchanan, near Regal Cinemas. Both opened in 2004. In a written statement, the company cited “economic conditions in our country at this time” as the reason for closure. The company will contact current clients and offer them phone counseling or a refund.
“Another women’s weight loss business, Inches-A-Weigh at 4774 Integrity Way, Grand Chute, will give a discount to anyone with unexpired LA Weight Loss contracts, said co-owner Dave Murphy.”
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LA Weight Loss Centers Closing in Milwaukee, WI
November 22, 2008 by admin · Leave a Comment
L.A. Weight Loss is closing all of its Milwaukee, WI locations according to the WITI-TV Milwaukee:
“Another sign of the times - a national franchise is closing all six of its Milwaukee area locations. This time, it’s LA Weight Loss that’s tightening its belt, leaving a lot of unhappy customers.”
Other recent closings include:
LA Weight Loss Center Closing in Eau Claire, Wisconsin
LA Weight Loss Centers Closing in Rochester, Minnesota
LA Weight Loss Centers Closing in Portland, OR
LA Weight Loss Center Closes in Great Falls, MT
LA Weight Loss Centers Closing in Raleigh, N.C.
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LA Weight Loss Centers Closing in Raleigh, N.C.
L.A. Weight Loss just announced it’s closing in Raleigh, N.C., according to the News & Observer:
“The LA Weight Loss centers at 6675 Falls of Neuse Road in Raleigh and 163 SE Cary Parkway will close in mid-November.
“Company spokeswoman Jackie Zima said the closures were due to ‘economic conditions in our country at this time.’
“The centers are notifying members, she said. … In Durham Jenny Craig opened a new center at 8128 Renaissance Parkway.”
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LA Weight Loss Centers Closing in Rochester, Minnesota
L.A. Weight Loss just announced its closing in Rochester, Minnesota center, according to the Post-bulletin:
“L.A. center to close
L.A. Weight Loss is trimming from its corporate waistline and that means Rochester’s center will close soon.
Current members will still receive the full program, the company said. “We are servicing out all of our clients. We’re not just closing our doors,” said spokeswoman Jackie Zima. “We’re there through the end of the year.”
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LA Weight Loss Center Closing in Eau Claire, Wisconsin
November 22, 2008 by admin · 2 Comments
L.A. Weight Loss just announced its closing in Eau Claire, Wisconsin center, according to a report on WQOW:
“L.A. Weight Loss just announced its closing in Eau Claire next Wednesday.
“When News 18 contacted the corporate offices, they sent us this statement: ‘We wish we could have stayed open after operating in the Eau Claire area for 4 years, but the economic conditions in our country at this time have forced us to close our centers.’
“Several members of L.A. Weight Loss contacted the station expressing their frustration. The members say it’s not just losing out on money they’re upset about.
“Members told News 18 they were looking forward to the extra support during the holiday season….”
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LA Weight Loss Center Closes in Great Falls, MT
November 22, 2008 by admin · Leave a Comment
The LA Weight Loss Center in Great Falls, MT has closed, according to local station KRTV:
"The Great Falls business community has suffered another loss, as L.A. Weight Loss closed this week.
The weight loss business was located in the Twilite Center on Smelter Avenue.
A toll-free number on the L.A. Weight Loss website states, "At this time there are no L.A. Weight Loss centers in your calling area."
It’s unknown how many employees the closure affects or what current L.A. Weight Loss customers can do to get refunds."
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LA Weight Loss Centers Closing in Portland, OR
November 22, 2008 by admin · Leave a Comment
All the LA Weight Loss Centers in Portland, OR are closing, according to a KATU report:
“PORTLAND, Ore. - The poor economy is forcing LA Weight Loss to close all of its franchises in the Portland area.
“The company is offering an alternative program and some customers may be eligible for refunds.
“Following is a statement from LA Weight Loss Franchise Company Inc., in Horsham, Pennsylvania:
“We wish we could have stayed open after operating in the Portland area for six years, but because of the economic conditions in our country at this time, which has forced us to close our centers. We are proud and happy to have helped the thousands of clients, who had success on our program and achieved their personal goal weights.
LA Weight Loss is currently still open and in the process of servicing out all active clients and are notifying all of them through letters and telephone calls, as well as in-person meetings.
We have a program set up called ‘LA on the GO’ to continue to provide the service and product as well as one-on-one counseling over the phone. Active clients who are currently participating on the program and have chosen to not participate on the LA on the GO program will receive a refund if eligible. Any active LA Weight Loss client that has questions can contact their local center.”"
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LA WEIGHT LOSS: La Quinta Center Closes Abruptly, Strands Members
October 10, 2008 by admin · Leave a Comment
Here’s the report in the Desert Sun:
The Coachella Valley’s only La Weight Loss Center, previously at 79-220 Corporate Center Dr. Suite 102 in La Quinta, closed its doors without notifying customers Sept. 24. Franchise owner Patricia Gesswein has left a message on her cell phone, telling her customers she will miss them.
“I got instructions from the corporate office today and I had no notice,” Gesswein tells callers. “This was my job and my life. I’ve never been in a siuation like this.”
But the corporate offices for La Weight Loss, based in Horsham Township, PA. said she is responsible for the closure.
“We’re as befuddled as the customers are,” said Brian Siegel, senior vice president. “She took their money and shut without notice. She needs to give refunds because these are not our operating procedures.”
It is surprising that Brian Segal is “befuddled,” since LA Weight Loss has evidently closed more than sixty locations recently (See our unofficial list of LA Weight Loss center closings). It’s also surprising that Patricia Gesswein claims she receved “instructions” from the corporate office and refers to LAWL as her “job.” As a franchisee, she is the owner of the franchised business.
Comments on the story were unsympathetic to Gesswein.
Suzy Snowflake wrote: “Hokey Pokey diet anyway. Doesn’t work.”
ChrisinPS wrote: “Sorry Patricia, your excuse does not pass the smell test. You are the franchise owner, but say that corporate closed you down? Sounds like she took the money and ran.”
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