Spa operator Klinger Advanced Aesthetics Inc. sought Chapter 11 protection from creditors in the U.S. Bankruptcy Court in New Jersey. The company, formerly known as Georgette Klinger, said in court papers that, after an ownership change in May, revenue was insufficient to support the payment of its debt without further funding. For the fiscal year ended July 1, 2006, revenue was about $33 million.
Klinger Advanced employs about 300 people in 11 salons and day spas in seven states, including its flagship location in Short Hills, N.J. The company and its six affiliates, who also filed Chapter 11 petitions, said they intend to seek financing that will enable them to 'make a fresh start'. Among creditors holding the largest unsecured claims against Klinger and its affiliates are: Cigna HealthCare ($370,237) and real estate company Janoff & Olshan Inc. ($206,099).
Klinger Advanced employs about 300 people in 11 salons and day spas in seven states, including its flagship location in Short Hills, N.J. The company and its six affiliates, who also filed Chapter 11 petitions, said they intend to seek financing that will enable them to 'make a fresh start'. Among creditors holding the largest unsecured claims against Klinger and its affiliates are: Cigna HealthCare ($370,237) and real estate company Janoff & Olshan Inc. ($206,099).