With less spending money, consumers appear to be putting off plans to remove unwanted body hair and wrinkles. That’s meant less business for providers of laser hair removal services, facelifts and liposuction.
Affiliates of Pure Med Spa, a large nationwide chain that provides laser hair treatments, filed for bankruptcy protection in Atlanta last month. Scroggins & Williamson partner Robert Williamson is legal counsel to Alpharetta-based Pure Med Spa.
Pure Med Spa has a complicated corporate ownership structure. Last month, nine affiliated entities filed for Chapter 11 protection in U.S. Bankruptcy Court for the Northern District of Georgia. Those cases were consolidated into one case under the debtor name GRF Medspa Broadway Plaza LLC.
Two other related corporate entities on Tuesday made separate bankruptcy filings—Pure Laser Hair Removal & Treatment Clinics Inc. and John Street Holdings LLC.
Pure Med Spa does not appear to have lined up post-petition financing, said Parker, Hudson, Rainer & Dobbs partner Eric Anderson, who’s advising creditor AlterInvest Fund LP. AlterInvest Fund is a partnership fund of the Business Development Bank of Canada, Anderson said. AlterInvest’s claim is valued at about $2 million, he said.
Pure Med Spa other estimated debts include $610,000 to First Premier Capital of Minnesota; $512,000 to Medicis of Phoenix; and $361,000 to Harbor Capital of Chicago.
Pure Med Spa has locations in Chicago, St. Louis, Las Vegas, Los Angeles, San Diego, Portland, Ore., Seattle, Silicon Valley and Toronto.