Flagship NYC Day Spa Involved in Bankruptcy Dispute

According to chapter7.com, Spa Chakra (formerly Cornelia Day Resort) is involved in a Chapter 7 Bankruptcy Dispute.
Spa Chakra's dispute stems over unpaid bills. Vendors are trying to force the New York spa into filing Chapter 7 bankruptcy. Spa Chakras is fighting back, saying the vendors have no claim as creditors, reports Crain's New York Business.

Spa Chakras was formerly known as Cornelia Day Resort, a renowned destination operated on Fifth Ave in downtown New York. Earlier this year, a former Microsoft executive purchased, Cornelia and rebranded it as Spa Chakras, a 19-spa chain he already operated.

The vendors pressing for a Chapter 7 say they are owed mroe than $1.3 million for work previously performed. According to Crain's, the spa has 20 days to formally respond. A spokesperson for the spa told Crain's the the petitioners "have no legal right to any monies or assets."

 

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