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Resolution for spa gift card holders after sudden closure

Former Studio 2000 employees to honor gift certificates
Posted at 1:22 PM, Sep 08, 2020
and last updated 2020-09-08 22:33:46-04

INDIANAPOLIS — Gift card holders left in the lurch by the sudden closure of a downtown Indianapolis salon and spa are getting some resolution, weeks after WRTV Investigates raised questions about the impact of the business closing for good.

Studio 2000 Salon & Day Spa closed its doors on August 7, citing downtown violence and the impact of COVID-19, after 30 years on Monument Circle.

The sudden closure left some customers with hundreds of dollars in unused gift cards, including Lena Wesco, who had $200 still left to spend at the spa.

"I like getting facials,” said Lena. “I have to keep this face together."

PREVIOUS | Spa’s sudden closure leaves customers with unused gift cards, questions

WRTV Investigates started asking questions last month, and an attorney for the spa said the business was working to make things right with creditors, including gift card holders.

On September 2, Studio 2000 sent an email to customers with a list of local spas that will honor gift certificates.

“We are excited to share with you that our former Salon Staff members have now landed at other salon & spa facilities in the Indianapolis area,” read the email. “This loyal and wonderful team of people are about to start taking clients and will be honoring Studio 2000 Gift Certificates for services over the next year. Please contact them directly to book an appointment and to use your Gift Certificate balance for services only.”

Some of the employees now wok at the Columbia Club, while others have ended up at Evexia Spa on Madison in Greenwood, Salon Lofts in Merchants Square, and Hair Works in Danville, the email said.

“Thank you all for your patience while we helped our staff find new locations,” read the September 2 email. “Please support our wonderful people!”

Customers like Lena are happy to have a resolution.

"Studio 2000 did honor the gift certificate,” said Lena. “Thank you for your help in bringing attention and awareness to their closure."

The Attorney General’s office says if a business closes suddenly, you can see if competitors will honor the gift card.

If the company files for bankruptcy, you can file a claim with the bankruptcy court and get your money back that way.

Also, hold onto your gift card just in case the business re-emerges after the pandemic.

"You want to be careful when you buy gift cards, because these places may not be around,” said Lena. “You might want try to use them as soon as possible."

Harley Means, attorney for Studio 2000 Salon & Day Spa, told WRTV last month that the company was working hard to develop a comprehensive and equitable plan that deals with its creditors, and especially with those who are gift cardholders.

“Studio 2000 will keep all creditors and gift card holders informed as to its progress on resolution. Again, let me emphasize that Studio 2000 is working diligently to resolve these issues,” said Means in an email to WRTV. “The owners of Studio 2000, Inc. are not granting interviews since gathering a comprehensive list of creditors and sale of all the assets takes time. The owners of Studio 2000, Inc. have been working full time on this since the closing.”

The attorney said Studio 2000, Inc.’s priority has been to help their 20 employees find new jobs in similar spa or salon environments.

“Studio 2000, Inc. is in the process of liquidating its remaining assets, which includes furniture, products and fixtures Studio 2000, Inc. anticipates providing a distribution to creditors, including those who have purchased gift cards, in accordance with Indiana law,” Means said.

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