FARMINGTON HILLS (WWJ) - Farmington Hills-based American Laser Centers has filed for bankruptcy protection.
The company leads the nation in so-called medi-spa services and has more than 100 locations in nearly 30 states.
Rivian Bell, who represents the company, said a weak economy has lowered demand for laser cosmetic procedures in general.
“It’s been coming for a few years. I think if you look at everyone who has disposable income, you know, there’s less of it and they’re being more careful about how they use it. So, it’s over a period of years, not just one year. Actually, recently sales have been quite good,” said Bell.
Bell said the chapter 11 filing will actually help the business.
“The only reason they filed in the Chapter 11 court is that it helps to speed up the whole process of changing the ownership and getting the new funding, and as a result of this they actually do have new money coming in right now. So, everything is operating as normal,” she said.
According to court filings, American Laser Centers listed estimated liabilities of $100-$500 million and assets of $50-$100 million. The company has about 1,263 employees.
Bell said a Philadelphia-based private equity agreed to acquire American Laser Centers for an undisclosed amount. The sale should be completed by the end of January.