The owners of Iatria Spa and Health Center of Raleigh have pulled the final plug on the business and filed for Chapter 7 bankruptcy liquidation.

HFM Spa Management Corp., the parent company of Iatria’s five business entities, filed a voluntary petition with the Eastern District of North Carolina’s U.S. Bankruptcy Court on Sept. 8.

The petition lists more than 100 creditors, many of whom were individuals who had pre-paid for services. Iatria was a full-service, medically oriented spa that offered services like chiropractic care, acupuncture and naturopathic medicine, as well as Botox injections and mesotherapy. The bankruptcy petition listed more than $500,000 in liabilities and less than $100,000 in remaining assets.

Iatria co-owners Erika Mangrum and David Mangrum opened the first location in 1999. They closed the downtown Raleigh location in 2008 and closed the remaining three locations – including the flagship location on Creedmoor Road in north Raleigh, as well as smaller locations at Wakefield and in Cary – on Aug. 31, 2009.

Terri L. Gardner, a lawyer with Nelson Mullins Riley & Scarborough LLP in Raleigh, is representing HFM Spa Management Corp. in the bankruptcy proceedings.

Joseph N. Callaway, a lawyer with Battle, Winslow, Scott & Wiley PA of Rocky Mount has been appointed by the court as the interim trustee for the case.

Full Article and Credits

Now more than ever, if you want to buy a Spa Gift Certificate, you should only purchase a Spavelous Spa Gift Card. It is accepted at any spa or salon that accepts VISA. You never have to worry about a spa business closing.

Iatria was a well-known, reputable spa that had been around for ten years. The Greenhouse was a destination spa icon since 1965. So you can’t necessarily count on reputation or longevity to make sure your gift certificate will be honored when the time comes.

The good news is that two Raleigh businesses say they will honor the gift certificates. R.O.I. Salon in Raleigh (which does hair, skin and nails) has announced it will honor the gift certificates dollar for dollar. And the owners of Synergy Spa, Anna Porrazzo and Dave Churchill, say “we will work with you to redeem these with us; we only ask you give us some time so that we can figure out a way to best accommodate everyone.”