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LA Weight Loss Australia Goes Bust

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Australian dieters have been left out of pocket after LA Weight Loss clinics closed their doors.

The LA Weight Loss franchise has been operating in Australia for about a year - with at least 12 clinics.

Yesterday, the doors were chained and there was a sign posted, apologising for the closure of the business.

"It is very disappointing. I feel for all those people who had only recently signed up," said Ms Deery. "There were many customers at the shop (yesterday), shaking their heads in shock."

Many customers have paid the 52 week maintenance fee (AUD$ 10 per week) in advance - as well as paying up front for a large supply of the protein bars.

There is no evidence that this has any affect on LA Weight Loss operations in the US.

NOTE: An on-line support group has been set-up here.

UPDATE: Apparently all Australian clients of LAWL will be receiving letters
canceling their contract for any further payments to LAWL.

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185 Comments(Now closed for this article)

Ang

Hi all

I starte LA back in September and unfortunatley for me it never really worked - they even had me go to Dr's regarding test for my metabolism and things but still no luck. Over the 14 weeks I lost 1.2kg's - they said I exercised too much....hmmm Anyway they agreed to refund my money that I had paid for the bars and not the program - so I thought fair enough that is great as I was still owed 33 boxes of lites. Anyway when they rang they said it would take 6 weeks to process. I was civil and said great as I thought it saves me selling the bars on ebay. Anyway that was 6 weeks ago last friday hmmmm is that just a coincidence or not?? The bad part for me is that all my certigy payment are finished so I have no way to stop the payments if they do finally close their doors. I am just out 33 boxes :(

Anyway the good news is that I started Tony Ferguson and it is roughly $44 per week (no contracts) just a $15 joining fee. The $44 covers two meals a day so really compared to LA it is very cheap. I have now lost about 7kg's and well on my way to goal weight. I know this won't help our money loss but maybe our weight loss.

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Dave

To all the team at the Belconnen LA weightloss centre. I'm sad to see the doors closed, but hang in there. I have been told by Certegy that they'll cancel my contract for the bars if LA aren't able to open their doors again in the next few weeks and my current direct debit is on hold.

I was looking forward to coming in to the shop this week week to show you my new body _ I have made my goal weight and lost 15 kilos in the past 14 weeks, with fantastic support and encouragement from you all.

Thank-you to every one of you girls in the Canberra office. I hope this thing gets sorted out. If it doesn't, then I'm happy to try and help anyone of you that needs to find employment with any business contacts I have.

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Lisa

Does anyone know about this HealthyInspirations. Stopped at local store to see if any new signs etc and was bombared with information etc about healthy inspirations. Maybe I am a skeptic but they got in awfully quick.

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Jess

Hi Everyone,
I can not beleive what has happened! My cousing who is also in the program rang me up on Friday and told me about it, but of course on Friday night I was unable to get any information from anywhere! I am so glad that I found this forum.

I think between the program and the LA Lites I have spent about $2000. How ridiculous!

I spent this morning ringing everyone I could think of to try and see if I could possibly get some of that money back.

Firstly I rang the Offfice of Fair Trading. The woman there was very helpful adn told me that they had statred an investigation into LA, and that I should ring back tomorrow to find out how it was going. This woman told me to ring ASIC, who told me that LA had not gone into redeivership as of this morning.

When I rang Certegy, the poor guy on the phone was so frazzled (I may have been a little bit nasty to him). He told me that LA had just contaced them and stated that 'a stock issue' was the reason for the closure. What a crock of S***! What kind of a business closes it's doors because there aren't enough musli bars on the shelf.

This guy at Certegy told me that if LA do not open before the 11th of June, all money left owing to them would be cancelled. Any payments owing on or before the 11th of June have been moved to a later date. Certegy said that any money we have already paid has nothing to do with them and it was our responsibility to take it up with LA.

My concern is if they DO actually open again. We have no choice but to continue to pay Certegy in this instance. And let's be honest, NO-ONE is ever going to sign on with them ever agian, so then they really WILL go bankrupt adn we are in the same place we are in now.

If anyone wants to contact me, my email is rothjess@hotmail.com. And if Pauline and Petra are here, I want to say thank-you both for supporting me and being understanding. You guys are great!

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Nicky

Anyone who can, please go to your local centre and put a sign in the window for those who aren't internet savvy, advising them to call Certegy and what's happening, I've done this at Capalaba, Qld today, there were still people turning up and devastated. Let's all help each other! There may be a support group starting up here (LA staff are very welcome in my eyes), with a get together say once per month - also keep your eyes on Extra, Today Tonight etc in case any LA client has made the big time! Good luck to all.

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akkk

reading all of these comments makes me feel so bad i was a manager for this company and yes we had no notice to be told over the phone and then t have to tell your own centre staff is totally didgusting i feel so bad for all the clients you guys have all done very well don't let these people stop you from losing your weight i totally agree with kaz its just not good enough hope they burn in hell

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Fleur
Nicky said:
Anyone who can, please go to your local centre and put a sign in the window for those who aren't internet savvy, advising them to call Certegy and what's happening, I've done this at Capalaba, Qld today, there were still people turning up and devastated. Let's all help each other! There may be a support group starting up here (LA staff are very wel[...]

Hi, there is a support group http://groups.google.com.au/group/weightlossoz. We are all going there to talk and still do the program ourselves. We are going to weigh every week and record our results. It is great to keep the support going so we can till reach our goals

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akkk
la weightloss australia worker said:
Well I worked for LA weightloss in Australia, and I am so very very sorry to all of our clients who have been left out of pocket. Us staff were only given 10 minutes notice to get out the door. Please call certigy and get your contracts cancelled. And please please please keep going with your weight loss, this is so unfair.[...]
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Bec
Dave said:
To all the team at the Belconnen LA weightloss centre. I'm sad to see the doors closed, but hang in there. I have been told by Certegy that they'll cancel my contract for the bars if LA aren't able to open their doors again in the next few weeks and my current direct debit is on hold.[...]

Dave you were truley a great client. It would be a fight at the door to see who would take you through. well done on reaching you goal weight. Your are a superstar. I hope to see you around town sometime and dont be shy to come say Hi! to any of us girls.
Good luck to you and the rest for the clients you can all do it, i believe in you all.
:)

Oh dont forget to slowly bring food back into you diet now. Add on each eg a fruit. fat. veggie. startch etc each week but only one at a time. see how you go with that.

Well done again!!

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Mandi

Dave

What can I say to you. You are a STAR. We so wanted to get your after picture up this week. What a SPUNK you are.

Keep going though. You can do it.....

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Mandi

Go Bec.

Great Work Love your style

Mandi :)

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Mandi

Dave,

Here I am back again. I just actually really wanted to thank you too. You make our jobs so pleasurable when you come in to see us each week.

Just promise me you will keep going. You have done such a trememdous job.

Us girls at Belconnen are so sad this has come to an end. But keep writing little blogs and let us know how you are getting along.

We are here for all our clients. No questions a dumb question

ITS ALL ABOUT YOU....

each and every one of you

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Karen

I would be interested to hear from any staff at LA Weight loss. Did you see this coming, any ideas of this? How did they tell you all and then give you five minutes to get out.

I bet you are all really pissed off. I do believe in the program, but felt the bars were way too overpriced. I am hoping that I can stick to the program by myself, but am extremely disappointed as I feel that I am left high and dry now. I would love to hear more from any staff to see their thoughts etc.

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AT

I am not sure we can trust the info that some have been told that our payments are on hold. Given that certegy have not been open and they and LA have had a few days to sort this. And we only have a first name of somebody of certegy. I know negotiations take time but LA (and perhaps certegy) would have predicted there closure before last week and could have been a little more on the front foot with the obvious queries that would come from clients.

I am thinking it still may be best to cancel our direct debits either by closure of our accounts or a stop with our banks. But then again who knows if we would then be liable to fees from certegy in the future by stopping our payments. Whilst I have faith the program works, if this certegy holding our payments till 11/6 where are the formal announcements from LA, certegy - they could atleast post the arrangements on either of websites.

LA this is not fair - whilst I recognise it is hard to contact all your clients in a day or two you could send a letter or email.

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Nik

I rang my bank today to cancel the payments. They told me they can not cancel them but just hold them for 15months.

So now tomorrow I have to ring Certergy and sort it out with them. I am glad I found this site as now I have some ammunition to use against them.

I am totally P****D at the amount of money I have lost especially considering that for me if was a slow way to lose weight. I lost more centermeters then weight...

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Erica

Hey Dave
I'm with Bec and Mandi- You've done such a fantastic job and I'm so proud to have been one of your consultants. I hope that you continue to do as well in every aspect of your life as you have done in this one. I know that you will pass on what you have learnt to everyone that you come in contact with, especially your kids.

Please keep in touch and continue to let us know how you are doing.

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karen
alun said:
Hi There,
My name is Alun I spoke to Certegy this morning they informed me that I would be liable for the debt being as they have already paid LA Weight Loss and they would continue to charge my Credit Card. So I have cancelled my Credit Card. Bank informed me that I may still be liable.
Has anyone had any advice telling them that they are no[...]

Alun, my bank advised that if I cancel my credit card that the payments will be redirected through to my new credit card. There is no way you can stop payments to a credit card only to a savings or debit account. Sorry.

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Megan

Hi everyone.
I am another upset LA Weight Loss client, I have lost just over $1000. I live in Queensland and not much is being said about it all up here, I was so angry that I had to hear from a friend at work. I drove to my LA weight loss centre that night to find a stupid sign on the door stating they are sorry and left the owner Derrick Black mobile number (which surprise is switched off) and the head office number (which is engaged).
I contacted Certegy today (28.05.07) and was told the same that they will defer any more payment coming out of my account for 14 days and if by 14 days they have been told that LA will not open again then they will cancel the contract and I will not have to make anymore payments, however they will not refund any payments that have already been paid. If LA does open their doors again then the contract will still be in place and payments will continue until fully paid off.
They said that alot of LA clients have been calling them about the payments and even if they do re-open alot of people do not want to go back, they aid that if this is the case and they do open they are unable to cancel any contracts even f you don;t go back.
My email address is megan.r.knight@hotmail.com I would love to keep in contact with other LA clients to keep informed as to what is happening with taking action against this company as I do not know any other LA clients.
Is there anyone here from Tweed heads centre ?

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Michelle D

Hi guys,

My name is Michelle and I am so grateful I found this site. I went to the Springwood clinic and went there on Friday morning for a weigh in and the door was closed. I asked a neighbouring business and she told me they shut down on Thursday night. There was no note and I had to scribble something on cardboard so other people would know. I am so confused and the only information I have is from the news channels.

I rang certegy and they told me they will defer payments for 14 days and apparently la weight loss is reopening within that time. I've tried calling different numbers and they just ring out.

I feel so frustrated, hurt and let down. I joined so at least I can regain some of my dignity from my family. I was only on the program for a week and had lost nearly 3 kgs! Since they've gone bust it feels like I've been let down and back to square one with everything. I've lost my support group and I'm going back to old habits I thought I had tried to kick.

I'm a uni student and was hesitant about paying so much money but when I saw results I was estatic. I'm angry that certegy could be telling people different stories about having to re pay the money. We never wanted this to happen! How could they do this?? I'm sure there are so many of you that are feeling vulnerable and upset. We shouldn't let them get away with this! I hope there will be an easy solution without having to hire lawyers because that's a battle I wont be able to fight and I'm sure others feel the same too.

Best of luck to all and good luck on your weight loss goals.

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geoff

Im one of those luck people who signed up, paid in full, and did not even get to go to my first week weigh in. so i am so happy with the current situation. i only have two small booklets 1 monthly dairy and i menu plan kit. i dont know but that sounds like great value to me. im just lucky i chose to buy the bars weekly - as i would have been extremely angry having to pay for even more stuff that i was never going to get. isnt there a cooling off period with contracts in AUstralia something like ten days. i didnt even make 5 days - but i am still screwed.
cheers geoff

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Not Happy Kat

I went to Coorparoo last Wednesday only to find the doors locked with a chain and a sign saying that they would not be open due to unforeseen circumstances that day (mind you there was no date on the notice). I returned home and rang Springwood branch who told me that Coorparoo would reopen at 9.30 that morning. I rang them because I was out of bars (i only like the peanut butter ones and they seemed to always be lacking in those) but that they had other products to supplement me till next week when the shipment was supposed to come in. Told them I was not interested as I didn't want to waste my money on products that were just going to sit in the pantry (still have chocolate and vanilla shakes left if anyone interested). Manager was persistant to get me to try other products but being the stubborn girl that I can be finally said no (for the fortieth time) and hung up. Rang back Springwood and Anne (who used to be one of my weight loss councellors - and I have had a lot of different ones since September!!!) suggested I add an extra protein to my diet to supplement for the bars.
I have found that this works and am still losing weight (miss the bars every now and then) but to satisfy the sweet craving I have a nestle diet desert every couple of days.
Don't give up - I feel sorry for those who have only just started because the courage that it takes to make a commitment like this is to be commended.

LETS ALL GET EVEN AND LOSE WEIGHT WITHOUT LA!!!

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Not Happy Kat

Geoff

Have just read fine print in contract (mine was opn a yellow form)
QUOTE
"No refund applications after completion of visit 3 of week 1 of your weight loss period. Refunds are at LA 's sole discretion. Initial Enrollment and Set-up fee of $149 is always non refundable."

The contract then says that if you are entitled to a refund and do not receive it within 30 days please contact customer service at 1800 252 050 or customerservice@laweightloss.com.au

How many visits did you have - suggest you see a lawyer or legal aid regards to this as your contract hopefully could be null and void seeing that they did not deliver their end of the bargain. Mind you good luck to any of us getting back any money from LA.

Still try to stick to it Geoff as you have made this commitment and so far I have lost 15 kilos and am still going

Kat

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Mother & Daughter

Hi Everyone

I only found out yesterday, by showing up at 8.00am with my 12 year old daughter as we do every Monday and no one was there. I went back in the afternoon and found a note from a local weight loss industrie saying they will honour our contracts for three months, but not the bars. At least some of the opposition has a heart or maybe they're hoping to gain more bussiness.
I wan't to thank the Canberra girls, you have all been fantastic. I'm upset about the money but at the end of the day I would rather keep paying than run the risk of a bad credit rating, especially when we will be applying for a housing loan soon.
What I'm upset about is that my daughter is doing so well and is finally getting some resembulance of a normal life and now she's saying how can she do it without the girls. I'm hoping one of the Canberra team is reading this and for anyone else who is thinking the same way. My daughter and I are weighing in today at home and were going to measure ourselves, were going to weigh ourselves every monday and thursday and whilst this sight is still running we will be posting it on the web. We will be making our Canberra girls proud of us still.
Thanks Canberra

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Fleur

Hey everyone.
We have a support group going http://groups.google.com.au/group/weightlossoz
I suggested that we all had our own support group that we could encourage and stay on the program ourselves. One of the other ladies was able to set the it up. We are posting our weight loss on there and just there to talk and get positive encouragment. Who needs La Weight Loss. We can do it ourselves. There will also be updates on there about any legal stuff etc. I have an appt with a lawyer today, so will be posting the outcome on the support group site this afternoon. Dont let La Weightloss let you lose sight of your goals to lose weight.

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Penny

This line that certegy are giving that LA has only closed down temporarily because of stock being unavailable just doesnt make any sense. If you were only shutting down for a couple of weeks, and planning on reopening, why would you let go of all of your staff?? Why would you give them five minutes to vacate the premises. If they are going to reopen when food arrives, they would either have to reemploy people who by the time hopefully have found new employment or train up new staff! Dont buy it for a second, theyve closed down! I read on an american web site that they closed down in some states over there and reopened as Pure life or something like that! Would that void our contracts if they reopen under another name, since our contracts were with LA?

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Fleur

Hi penny, I think it would void them. We have contracts with La not any other company. Lets hope the lawyer today says the contracts are duds

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boraz

the director of La weight loss is Derek Black of Bella Vista

I am so angry this has happened I have only being doing this for 3 weeks now. I thought i had finally found somewhere that cares. I was from the Toowong store. I hope the media get on this.

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Mother & Daughter

Hi Mandi

We just weighed in my daughter (C) has gone down to 68k and I (Sonya) have gone down to 65k, only 3 more kilos and I will be at my goal wight. Thanks Bec for the tip with Dave at least now I know how to stabalize. Can you let me know what to do with (C)I remeber one of you saying that she could have an extra vegetable and half a protein serve in replace of the bars. Is that rite?

Thanks again
Sonya

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Graeme

Hi All
Thanks to all for the advice in the posts so far. I had also been going to LA at Belconnen and so far had lost almost 10kg in 6 weeks and feeling so much better than ever. The staff at Belconnen were always great and so supportive, so many thanks to any of them who may be here.

This morning I have faxed a letter off to Certegy (also found a different fax number for them so sent it to that one too, its for Certegy Ezi-pay services, 08 8223 7810, I figured it couldnt hurt to send it to more than one number there) and copied the letter to ACT Office of Fair Trading. Asking for any further debits to be put on hold until at least 12 June 2007 and if LA does not re-open then to cancel the contract entirely. Will wait and see from here I guess.

In wandering around the supermarket last night I found the weight watchers cereal bars and they're lower (in some instances much lower) than the LA lites on everything except sodium.

Keep up the good work everyone, keep up with the weight loss no matter what happens to companies, we must use the information available to us and take control of our lives to lose the weight we want.

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Penny

That certegy contract we signed, Im not sure if this is the same with all direct debit agreements, but shouldnt we have been made aware that we were actually taking out a loan with this company? I guess Im a bit nieve about this kind of transaction. Also I dont believe we should have been signing a form like that anyway, Im not aware of anyone who actually received their bars in bulk when signing, and I wouldnt have thought a company could provide 18 months of bars in advance anyway given the expiry dates on the box. That contract said we were paying of products and services that were received in full at time of agreement. My reporter friend also has a quote from "skip" at Certegy stating that they only acted as a third party to LA which should I would think entitle us to clause 19 of the banking laws as dictated by the banking ombudsman, that we can in fact cancel direct debits through a third party agent.

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Lisa

How confusing. Don't you wish everyone could give you the same story.

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Belconnen worker

Well Done mother and daughter! Congratulations! S you are almost there! keep up the good work. I'm sure that is it inspiring your daughter to keep going. I'm so proud of you both and glad to hear that you are continuing with the program as it works even without the bars. I didnt't see you and C as often as the other girls, but I did watch your progress and amazing hard work. Give C and youself an extra protein serve and an extra vegetable and you both will be right with out them. I'm so proud of you both!

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Belconnen worker

Yay! Graeme
you are such a super star! with that sort of motivation you can lose all the weight you want. I'm very proud of you and your 10kg in 6 weeks. Keep up the good work and please post your progress so that we can see how you are going. All the best! How many now? 200?

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Mother & Daughter

Hi Everyone

I too have been on the phone to certegy and was given the same statement, that "La weightloss Australia are in disspute with the parent company and should re-open in two weeks" if they don't we are to phone back and our contracts will be cancelled, for now mine has been put on hold. (Time will tell).
To the canberra crew, would it be possible to put a note on the door, I think it's outrageous that another company can put there sign up - when our loyalties are to you girls and if you re-open we'll be there. This forum and the other talk back forum via google could be put up on the door.

Thanks again
Sonya

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Penny

Canberra Staff - do you think LA will be opening again? Seems weird to sack everyone if you are only going to need staff again in a couple of weeks? Have you been officially told you are out of jobs?

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cheated

I feel cheated, I only just joined and did not get to finish the week, therefore, I am not familiar with the programme yet. What do I do? I will try and keep going but not 100% sure as to whether I am doing it right!

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Kristi

Daughter of X-Employee

Yes, its true.. the girls at Springwood, and all the other centres around Australia received a phone call on Thursday night saying not to bother going back to work on Friday. Thats it. All over. Doors are shut.

Mum and all the other girls were discusted, not only about the fact that they had all just lost their jobs, but they all felt so bad for the clients. No one had any idea this was going to happen, not even the workers. The owners of the company had told their employees that the reason they were running short of stock was because they were hard to get in from America. But that was a load of bull. The owners must have known this was going to happen, and still they were not telling anyone and letting their employees keep selling to these poor clients.

I find it so gutless and discusting how the 'owners' have not made a public announcement to let ANYONE know what is going on. People have been left without jobs & clients have been left thousands out of pocket, and the truth is, they probably dont even care.

Anyway I just wanted to get my point accross that its not the workers fault. They had no idea this was going to happen. I just hope that they dont get away with what they have done.

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Penny

I dont think anyone is blaming the workers at all. Our anger is for the fat cat who has skipped town with probably a few million in his/her pocket leaving us and certegy in thousands if not millions of dollars of debt!

Yes a public announcement would be very welcome right now!

Cheated - go and join this site http://groups.google.com.au/group/weightlossoz Shannon started it up yesterday and we are using it to support each other, keep up to date on the legal matters, keep each other encouraged to continue to lose weight etc. There are a few ex staff members visiting frequently who I am sure will be able to help you get started.

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Jocelyn

Hi guys, how are you? What a s--t situation. Does anyone know what I can do if I paid upfront?
Thanks

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Des

I joined up and paid up front for the 52 weeks plus 10 weeks of lites. I was initially told that the program would be very hard to do without the lites - anyway,3 weeks into the program and doing quite well, I was told that there were no lites and that they would be coming in next week - well next week turned to 3 weeks - the consultants kept on trying to sell me shakes/soup etc - I didn't want to be on liquid diet. When the lites did come in - I phoned and asked to keep a couple of boxes aside (I had already paid for all my lites) - next day when I went into the centre they told me that they had to give my lites to someone else and that I could have a choice between cherry or lemon - I told them that since I had already paid for my lites that I should be able to get them and they told me that they couldn't do that. I asked them why it was difficult to get a supply of these lites in from America and they advised that the Australian Customs Service was holding up the clearance process. As a Customs Broker who facilitates the import and export of goods I new that something was not right -

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