LA Weight Loss refund promise retracted
Last Updated: Wednesday, January 14, 2009 | 6:07 AM ET
CBC News
Customers of a weight loss clinic in Atlantic Canada that went broke just before Christmas will not receive refunds as promised.
'As a result of the receivership the company no longer has any capital.'— Letter from LA Weight Loss
Memberships in the LA Weight Loss clinics cost hundreds of dollars, and customers were told in December they would get refunds, but they are now receiving letters saying otherwise.
"We take this opportunity to inform you that LA Weight Loss Maritimes Incorporated has been put into receivership by the secured creditors of the company," reads a letter received by Charlottetown customer Meredith Smith.
"Unfortunately as a result of the receivership the company no longer has any capital and is unable to provide any refund. We are sorry but we are unable to process your request."
Smith paid $600 for her membership last fall. When the nine franchises in Atlantic Canada closed their doors last month, she applied online for a refund as instructed by staff. She got the letter from the company's head office in Pennsylvania Monday.
Because LA Weigh Loss Clinics are a franchise operation, the hundreds of locations across the U.S. and Canada are independently owned and operated. The Pennsylvania company doesn't carry responsibility for debts of a local franchisee.
Complaints going online
The owner of the Maritime clinics, David Schneer, wasn't answering his phone Tuesday. Smith has been online this week letting people know they should not expect their money back.
"I'm making sure that everyone is aware that the company is not living up to their commitment to any of us, and just making people aware," she said.
Many customers have also been registering their anger in comments on a CBC News story published in late November when the clinics announced they would close.
Maritimers aren't the only ones who found themselves locked out of LA Weight Loss clinics recently. A number of franchises in Ontario have also closed their doors. The franchises in Ontario are owned by Michael Shneer, who shares a business address in Toronto with David Schneer.
The franchising office in Pennsylvania did not return calls Tuesday.
