CBC.ca:

Customers of a weight loss clinic in Atlantic Canada that went broke just before Christmas will not receive refunds as promised.
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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… read on.