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Heidi Young, one of LA Weight Loss's customers before it closed. (Etienne Ranger, OBJ)

BBB fields nine complaints; parent company claims little can be done

A Toronto-area company in receivership triggered a tidal wave of sudden LA Weight Loss closures across Canada that finally reached Ottawa in late December, OBJ has learned.

In its wake were confused customers such as Heidi Young, an Algonquin College student, who said she received no notice before all four Ottawa locations closed on Dec. 29.

"I was off for a week over the Christmas holidays and when I went back, the doors were locked, there was a note on the door and the windows were papered over," she said.

On the door of the former Alta Vista location was a sign informing customers that the franchise, owned by franchisee Diet Success Corp., was closing because it couldn't get products such as nutrition bars from its United States supplier.

"I feel used. I feel gullible. I never thought I was one of those people," she said.

But Ottawa consumers weren't alone in their confusion. On the same day and in remarkably similar circumstances, a host of other locations across Ontario – in cities such as Windsor, Kingston and London – also connected with Diet Success shuttered their shops just as suddenly.

Two LA Weight Loss locations across the Ottawa River, in Gatineau, were also reported closed last week, although it's not clear if they were owned by Diet Success.

Repeated calls by OBJ to Michael Shneer, the Vaughan, Ont. owner of Diet Success, went unreturned.

His company's address is listed as 351 Spinnaker Way in Vaughan – the same address listed for LAWL Maritimes Inc., owned by relative David Shneer.

LAWL Maritimes shut all nine LA Weight Loss locations in Atlantic Canada in December, and according to bankruptcy records entered receivership on Dec. 12.

The company listed no assets or liabilities on its claim, and the trustee responsible did not respond to phone calls.

Pennsylvania-based parent company LA Weight Loss Franchise Co. said in a statement that it was "befuddled" by the Ottawa closures.

"We understand that Diet Success has closed without giving notice or returning the prepayments received from its customers," it read. "We find this shocking and are demanding that it follow our procedures that require proper notice and refunds. We are as befuddled as its customers. (This) is certainly not in line with standard operating procedures."

Diet Success's claim that it was out of stock and unable to procure more was untrue, the company added, as "we have warehouses of product ready and able to be shipped."

But that's small comfort to consumers. Nine Diet Success Corp. clients have called the Better Business Bureau (BBB) of Eastern and Northern Ontario and the Outaouais, which also represents Ottawa, said chief executive Diane Iadeluca.

"We tried to contact (Diet Success) in the way we normally do, which is contact them by e-mail, fax, in writing, by mail – and we couldn't get through as well," she added.

At the moment she is waiting from word from the Pennsylvania BBB that is located near the LA Weight Loss headquarters in Horsham, Penn. But she wasn't optimistic that they could help, either.

Ms. Iadeluca also slammed Diet Success for its lack of "integrity and ethics."

"What I find is really sad is that some of these people had signed on just recently and (Diet Success) knew that they were closing," she added. "At least they could have warned people and said, 'Sorry, we can't take your application now.' "

On Richmond Road, where customer Shirley McGlashan says she regularly went for appointments, the store had stockpiles of nutrition bars, cookbooks and other items on sale at a reduced price throughout December.

"I said, 'Why the sale?' and they told me, 'We're receiving a big shipment in and we don't want to have to do inventory. We hate doing inventory, so we want to get rid of as much product as possible.'"

Ms. McGlashan bought 40 boxes of nutrition bars – around $20 per box – and took some home with her each time she visited. About 25 boxes are still missing, she said.

According to a spokesperson for LA Weight Loss Franchise Co., who refused to release her name, the parent company investigated Diet Success but concluded there was nothing it could legally do.

"We are a franchise-operated business. I wish I could say we're here to save the day, but we aren't," she said.

And although dozens of LA Weight Loss locations have also closed in the U.S. and Australia, the spokesperson said most of those were affiliated with another company called Pure Weight Loss – which ceased being the parent company of LA Weight Loss Franchises Co. in 2004.

"Michael Shneer's situation is a little different," she added, "where he closed suddenly. We wouldn't recommend that he close the way he did."

- with files from Peter Kovessy

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Refund options for LA Weight Loss customers in Ottawa:

If you used Visa, MasterCard or another major credit card:

Contact your credit card customer service line directly, as this may be covered under its refunds policy. Use the phone number listed on the back of your card.

If you used the health-care credit line, CareCredit:

Use the phone number on the back of your card, or call one of these two numbers:

1-866-453-9961 or 1-866-453-9960.

All other inquiries:

Try the chapter of the Better Business Bureau that represents Ottawa at 613-237-4856.