Famed New York Spa in Chapter 7 Bankruptcy Dispute
Spa Chakras was known for treating the famous and fabulous to rest and relaxation. But a dispute over unpaid bills is leading to some tense business proceedings.
Vendors are trying to force the New York spa into filing Chapter 7 bankruptcy. Spa Chakras is fighting back, saying the vendors have no claim as creditors, reports Crain’s New York Business.
Spa Chakras was formerly known as Cornelia Day Resort, a renowned destination operated on Fifth Ave in downtown New York. Earlier this year, a former Microsoft executive purchased, Cornelia and rebranded it as Spa Chakras, a 19-spa chain he already operated.
The vendors pressing for a Chapter 7 say they are owed mroe than $1.3 million for work previously performed. According to Crain’s, the spa has 20 days to formally respond. A spokesperson for the spa told Crain’s the the petitioners “have no legal right to any monies or assets.”
Whether that is the case will be determined in courts in the near future.