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Customers of former spa will get money back
When Spa 151 on the River closed without warning in late January, hundreds of customers were left holding worthless gift certificates and gift cards.
Good Example of Why you should only purchase Spavelous Spa Gift Cards and Spa Gift Certificates!
On Tuesday, after almost four months of investigation and negotiation, Missouri Attorney General Jay Nixon announced those consumers will get their money back. Ashli and Scott Rowland, owners of the spa, and Brent Wills, a one-time business partner of the Rowlands, agreed to pay up to $103,000 in restitution.
The agreement will be enforced by the Cole County Circuit Court, where Nixon’s office filed a copy of the settlement. In addition, the Rowlands and Wills will pay $4,000 to the state to cover the cost of the investigation.
Since the spa closed, 358 consumers have filed complaints with the attorney general’s consumer affairs hot line, said John Fougere, press secretary to Nixon.
The voluntary agreement requires the Rowlands to pay $15,000 each and Wills to pay $30,000 into a restitution fund that will be managed by Nixon’s office. Should claims for restitution exceed $60,000, the Rowlands and Wills will be liable to cover up to $43,000 in additional claims, Nixon’s office said in a news release.
Spa 151’s troubles began during the divorce proceedings between Scott and Ashli Rowland. Late in January, Scott Rowland came to the spa, announced he was taking over from his estranged wife and changed the locks, according to several employee accounts. He told employees they could not honor the gift cards or certificates or accept credit cards. The employees, who as contract workers received a share of each sale as part of their pay, refused those terms, did not return to work, and the spa closed.
In an interview with the Southeast Missourian a week later, Ashli Rowland promised to make full restitution to all gift card and gift certificate holders. She promised at that time to set up a post office box to receive the cards and certificates.
But as complaints mounted, Rowland became impossible to reach and Nixon’s office promised to make her keep the promise.
“Consumers who paid up front for Spa 151 gift certificates did in good faith and had no reason to believe that the business was about to close,” Nixon said in the prepared statement announcing the refund deal. “Businesses that accept full payment up front for services to be delivered to consumers in the future have an obligation to deliver those services or provide refunds, regardless if they’re going out of business or experiencing financial problems.”
Neither Ashli nor Scott Rowland, both of whom have moved to Ashland, Mo., according to court records, could be reached for comment Tuesday. Neither could Wills, who operates an insurance brokerage in Jackson.
When Spa 151 closed, Wills said he had no responsibility for the operation of the business or the actions that forced it to close. He did acknowledge he was originally a partner in the spa and held a continuing interest in the property.
Putting it behind him
Investigators with Nixon’s office also found that Wills was not involved in the business when it closed.
“During our investigation it became fairly obvious that Mr. Wills hadn’t been involved in the business for some time,” Fougere said. “But he was willing to pay $30,000 to put this behind him.”
A new spa with no connection to the Rowlands or Wills, eDen Spa & Boutique, has opened at 151 S. Spanish St. The owner is Kristina Schumer.
Spa 151 operated at 151 S. Spanish St. for a little more than two years.
The refunds will be sent by the attorney general’s office from funds deposited by the Rowlands and Wills, Fougere said. Many of the complaints focused on gift cards sold in the periods immediately before Christmas and Valentine’s Day.
Of the initial $60,000, $7,392 will be used to reimburse credit-card companies that have already charged back the gift certificate purchases.
The additional $43,000 will be paid if claims exceed $60,000. Each of the Rowlands and Wills are liable for the amount, and Wills has opened a letter of credit with First Midwest Bank in Jackson with the attorney general’s office as the beneficiary to guarantee the payments.
Consumers who have already filed complaints with Nixon’s office and those who file complaints within the next 90 days are eligible for the refunds. Consumers seeking refunds will be required to provide proof of their purchase, Fougere said.
To file a complaint, call the consumer affairs hot line at 800-392-8222 or go to the attorney general’s Web site at www.ago.mo.gov.
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