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In wake of bankruptcy, LA Weight Loss agrees to refund members

In wake of bankruptcy, LA Weight Loss agrees to refund members

The Pennsylvania weight management chain that abruptly closed last year has agreed to pay $275,000 i

The Pennsylvania weight management chain that abruptly closed last year has agreed to pay $275,000 in refunds to the New Yorkers who had paid for but never received its services, state Attorney General Andrew Cuomo announced today.

In January 2008, LA Weight Loss Centers closed 45 centers statewide and subsequently filed for Chapter 7 liquidation a Philadelphia bankruptcy court. The closures set off a deluge of complaints from clinic customers who could not recoup lost funds or cancel credit card charges for advanced payments.

Cuomo estimates two dozen Capital Region residents could receive refunds from LA Weight, which had centers in Colonie, Troy and Pittsfield, Mass. Affected customers need to file an LA Weight claim form with the attorney general’s office by March 2.

At one point, LA Weight was one of the world’s fastest growing weight management companies with over 900 company-owned franchise centers worldwide. The company, which was founded in 1989, provided customers with personalized meal plans and counseling to help them lose weight.

In a statement, Cuomo said even companies that “fall victim to the economy … have an obligation to abide by the law and be forthright with their patrons.” The state’s Health Club Services Law requires health clubs to front performance bonds — ranging from $50,000 to $200,000 — to protect customers from contract breaches.

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