Company won't honor my pre-purchased service packages without a contingency

[kosel]

(State: Virginia) I paid $2,500 to Reveal MedSpa for spa treatment packages that I had not yet redeemed. Reveal sent an email in July saying that it was no longer in operation and that a new company called Medalase would be operating in Reveal's former locations. The email said "please be assured that Medalase will honor and perform any remaining treatments you have with Reveal." However, when I called Medalase today to schedule an appointment, they said that they will only honor my packages if I buy a treatment package from them for the same price. I don't have money to spend on this, and I am furious. Can they do that? Is there anything I can do to prevent this? Thanks in advance!

 

[OHRoadwarrior]

Yes, they can if they are a different company. Think of it logically. If a Ford dealer closes up and a Chevy dealer moves in, is he obligated to honor your Ford warranty or oil change coupons?

 

[jiggy78]

They do if assuming the liabilities of the predecessor entity was part of the deal.

 

[OHRoadwarrior]

They do if assuming the liabilities of the predecessor entity was part of the deal.

True, however OP has not indicated any proof that exists. Usually, the new company will extend a bit of a "gimmee" to get the old businesses customers.

 

[LdiJ]

They do if assuming the liabilities of the predecessor entity was part of the deal.

Correct...if they purchased the company as a "whole entity" then they are responsible for its liabilities (which a spa package would be) as well as the new owners of its assets.

However, if they purchased only the assets of the company (which usually costs more) then they are not responsible for its liabilities.

I do think that this company however is being shortsighted.