Rant: AHHHH THOSE MOTHERFRS

[downreactor]

I bought SWMBO a gift certificate for a Spa package at a dayspa in Austin back in January. She calls them last week to setup an appointment. The Spa has changed names. Come to find out, the old dayspa went out of business IN January!! The new dayspa will honor only half of the price of the gift certificate just because they are nice. This is a FOURHUNDRED DOLLAR GIFT CERTICATE!!!! The owners of the dayspa that went out of business live just down the street from us. They're fin ta get a knock on they door!

 

[EdWort]

The SOB's knew what was up when they stole your money. Bastiges!

 

[brauhaus]

what ******-nozzles.

 

[MrFebtober]

That really seems like a poor decision on the part of the new spa owners, whom one would think would be doing everything they can to promote their new biz in a positive light. This looks like a great opportunity to give a new business a black mark with the BBB if they don't come around on this.

 

[brauhaus]

That really seems like a poor decision on the part of the new spa owners, whom one would think would be doing everything they can to promote their new biz in a positive light. This looks like a great opportunity to give a new business a black mark with the BBB if they don't come around on this.

yeah, you know I don't get why they won't honor the gift certificate 100%... i would be fuming if I had purchased a $400 gift card to be told $200 of it will be honored...

screw that, I'd report the original owners to the BBB, and the new owners.

 

[the_bird]

Why on earth should the NEW owners honor the gift certificate in full? The $400 went to the old owners, not the new. That's just giving away $400 of services for nothing. Might be good karma for them, or good word of mouth - but they're under no obligation, moral or otherwise, to honor a certificate sold by an OLD company.

Really, is there any connection between the new business and the old other than the location?

 

[the_bird]

I should say - it was very *****ie of the old owners to sell gift certificates when they must have known they were on the way out, although I'm not sure how they would have said no. "Please don't give us that money, we're going to be locking the doors next Thursday!"

 

[srm775]

Why on earth should the NEW owners honor the gift certificate in full? The $400 went to the old owners, not the new. That's just giving away $400 of services for nothing. Might be good karma for them, or good word of mouth - but they're under no obligation, moral or otherwise, to honor a certificate sold by an OLD company.

Really, is there any connection between the new business and the old other than the location?

Yeah, really. If there is zero connection between the old and new business then I actually think it's rather generous of them to even honor 1/2 of the gift certificate. Just because the two business are of the same type (the new business probably chose that location because it was already set-up for that type of work) doesn't mean that this new company should do anything extra for you. I mean, if new company were a dry-cleaners, would you expect them to give you $400 worth of free drycleaning, just because they happened to be in the same location.

 

[Donasay]

Yes, but if the old owners sold the business, client list, spa equipment, fixtures, computer system, they also should have sold them the account with the money for gift certificates in it. In terms of accounting practices, businesses don't count gift card sales as profit or a sale until they are redeemed. The money at least in massachusetts has to sit in on the books unspent for 3 years before the company can take the money as theirs, if it isn't spent. We have some strict consumer protection, gift card laws to prevent this kind of thing from happening.

Anyway you should find out if company B purchased company A and if so you are probably entitled to the full amount, but I don't know what the laws are in your state.

 

[EdWort]

I should say - it was very *****ie of the old owners to sell gift certificates when they must have known they were on the way out, although I'm not sure how they would have said no. "Please don't give us that money, we're going to be locking the doors next Thursday!"

They could have simply said "Sorry, we don't offer gift certificates any longer".

I would take those people to small claims court for fraud.

 

[EdWort]

Yes, but if the old owners sold the business, client list, spa equipment, fixtures, computer system, they also should have sold them the account with the money for gift certificates in it. In terms of accounting practices, businesses don't count gift card sales as profit or a sale until they are redeemed. The money at least in massachusetts has to sit in on the books unspent for 3 years before the company can take the money as theirs, if it isn't spent. We have some strict consumer protection, gift card laws to prevent this kind of thing from happening.

Anyway you should find out if company B purchased company A and if so you are probably entitled to the full amount, but I don't know what the laws are in your state.

Interesting point. When you buy a business, don't you buy the liabilities as well as the assets?

 

[kornkob]

Interesting point. When you buy a business, don't you buy the liabilities as well as the assets?

I guess my understanding from the OP was that this is a new business in the same location, not the old business under new management.


If "My Favorite Spa" run by this guy's neighbors closed their doors in January and shut down for business and then someone else came along as took on the lease to start 'Your Favorite Spa' in the same location then what we're talking about is 2 different organizations and the new business should have no obligation to honor any part of the old business arrangements. Not unlike the several time I've seen a Marriott Hotel sell the structure to Holiday Inn. HI takes over, slaps their signage everywhere and continues doing business but has no reason to honor Marriott deals.

This gets much more complicated if the new business opened under the same name and I suspect that they'd then be on the hook for the GC.

 

[the_bird]

Well, the OP indicated that the old business "shut down," not "was sold." If you bought the existing business lock, stock and barrel, you'd probably keep the name, right? That's a good portion of your goodwill - people knowing which company to look up in the phone book. Even if they bought all of the equipment, that's different from buying the company.

 

[MrFebtober]

Good point. I guess I latched onto the term "new management" and pictured everything else being the same, such as the business name, furniture, etc.

It made me think of a great little chinese restaurant my wife used to really enjoy. The owners sold everything and retired (good for them, they earned it), seemingly selling all assets, including name and furniture (even kept the same wait staff) to new managers. The only difference was the quality of the ingredients in the dishes went way down when the new management started cutting corners. Besides that, you never would have known the biz had changed hands. This might be a very different scenario, though.

 

[Bobby_M]

Somewhat off topic, but that's why I HATE gift cards, gift certificates, etc. The future value of that money is blown and you're lucky if you remember to redeem them at all. If it's a gift for a spouse, you're better off making a coupon yourself saying one day at the spa. She has your credit card anyway.

 

[the_bird]

Somewhat off topic, but that's why I HATE gift cards, gift certificates, etc. The future value of that money is blown and you're lucky if you remember to redeem them at all. If it's a gift for a spouse, you're better off making a coupon yourself saying one day at the spa. She has your credit card anyway.

Also

One of my co-workers always gives me a bottle of "moonshine" (a vodka/fruit concoction she makes, very tasty but not white lighting) and some other stuff like that at Christmas. Very much appreciated.

So, a month or so ago, I'm cleaning out my office, and grab the gift bag that all that came in... and oh, there's a card in here... and a gift card... to Home Depot... and it's $100!

HELLO, new router!

 

[downreactor]

The owners of the new business actually own the building and were leasing it to the owners of the old business. The old business just cut and ran. The new owners haven't been able to get in touch with them. I think I will have to take them to small claims court. They have a Bed and Breakfast near my house.

 

[Dig]

They sure don't sound like the normal "Austin" type. I would be grumpy too.

 

[the_bird]

Definately sounds like you have a case for fraud against the old owners.

Where's TexLaw when you need him, dammit!

 

[BierMuncher]

yeah, you know I don't get why they won't honor the gift certificate 100%... i would be fuming if I had purchased a $400 gift card to be told $200 of it will be honored...

screw that, I'd report the original owners to the BBB, and the new owners.

That really seems like a poor decision on the part of the new spa owners, whom one would think would be doing everything they can to promote their new biz in a positive light. This looks like a great opportunity to give a new business a black mark with the BBB if they don't come around on this.

I think the fact that the new owners (who had no connection to the people who absconded with the OP's money) are being very generous by giving him a 50% credit. Reward their generosity by reporting them to the BBB???

 

[Glibbidy]

The owners of the new business actually own the building and were leasing it to the owners of the old business. The old business just cut and ran. The new owners haven't been able to get in touch with them. I think I will have to take them to small claims court. They have a Bed and Breakfast near my house.

They couldn't have run very far if they live down the street from you.

 

[brauhaus]

Yes, but if the old owners sold the business, client list, spa equipment, fixtures, computer system, they also should have sold them the account with the money for gift certificates in it. In terms of accounting practices, businesses don't count gift card sales as profit or a sale until they are redeemed. The money at least in massachusetts has to sit in on the books unspent for 3 years before the company can take the money as theirs, if it isn't spent. We have some strict consumer protection, gift card laws to prevent this kind of thing from happening.

Anyway you should find out if company B purchased company A and if so you are probably entitled to the full amount, but I don't know what the laws are in your state.

that is why I feel as if the new company should be honoring the gift cert.... they now own a spa, where previously was occupied by a spa, I'm sure they bought out the old spa to not only keep the regular clients that the old spa had, but to attract new clientèle as well... honoring the gift cert seems like good practice to me, esp if they want to retain customers.

**edit: after re-reading all 3 pages I'd like to reiterate my original thought; I'd be pissed off after buying a $400 gift card to be told that $200 of it would be honored, more pissed off at the original company I purchased the gift certificate from for screwing me over... I think it may be too late to report them to the BBB, esp if they are no longer a business... since this new company's only connection to the original company is owning the building the spa occupies, and since they are having legal issues of their own with the old company I'm still confused why they won't honor the gift cert. Obviously they know what's it's like to be screwed over by these people, why continue the trend to potential customers?

oh well, i guess $200 is better than nothing.

 

[kornkob]

Obviously they know what's it's like to be screwed over by these people, why continue the trend to potential customers?

Just because you can empathize with someone doesn't mean you are compelled to make their pain go away.

Why should the new company suffer MORE pain at the hands of the old company by honoring the old company's debt.



The fact that they are honoring HALF the debt shows that they are compassionate and understanding towards those who got hosed.

Consider this example: Someone knocks on your door and says 'the last guy that lived here owes me a 6 pack of beer'. If you invite the guy in and sit down and split a 6 pack with him you are going to extraordinary measures to make that person happy. Hell you might even get a lifelong friend out of the deal.

But you'd be completely within your rights to tell him 'Not my problem' and close the door.


No different than this spa situation.

 

[MrFebtober]

I think the fact that the new owners (who had no connection to the people who absconded with the OP's money) are being very generous by giving him a 50% credit. Reward their generosity by reporting them to the BBB???

It originally sounded as if the new owners took over all assets of the business, which would include depts and GCs and customer base. It's sounding less likely that this is the case. So, no, I guess they aren't obligated to honor the GC, but personally I'd try to bite the bullet and honor the whole thing if I was the new owner, for the sake of building and maintaining that precious customer base. Then again, I guess that would depend on just how many crooked GCs had been issued...one can only bite so many bullets.

 

[brauhaus]

Consider this example: Someone knocks on your door and says 'the last guy that lived here owes me a 6 pack of beer'. If you invite the guy in and sit down and split a 6 pack with him you are going to extraordinary measures to make that person happy. Hell you might even get a lifelong friend out of the deal.

Well, I can see your point, I was thinking...

If the last person who resided there operated a bar from that location, and after they left I took their place and opened a new bar and people came to me with GCs I'd try to honor them as best as I could... like I said, I guess $200 is better than nothing.