The company relocated earlier this year and then abruptly closed. Now, people with unused gift certificates are wondering what they can do to redeem them.
NewsChannel 9 learned Best and Company Salon filed for Chapter 7 bankruptcy in federal court.
The court documents obtained reveal the salon has a large debt and many clients listed are in fact, people who bought gift certificates.
Those customers were all mailed notices explaining how they can get a form from the court to establish proof that they are owed money. The deadline for filing is June 16.
How much will people be refunded? That's uncertain at the moment, as it depends on what is left over after the salon's debts are paid off.
We spoke to SU law professor Gregory Germain who specializes in bankruptcy proceedings and he said when filling out the official 'Proof of Claim' form, there are specific instructions you must follow if you want to be eligible to get some of your money back.
Germain says to make sure you check the box on number five, Amount of Claim Entitled to Priority, that says, "Up to $2,775* of deposits toward purchase, lease, or rental of property or services for personal, family, or household use – 11 U.S.C. § 507 (a)(7)."
You can find a proof of claim form here.
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