SPOKANE, Wash. – The local Positive Changes franchises, owned by ET Research, have filed for bankruptcy. Court documents, obtained by KREM 2, revealed the company still owes millions of dollars to over 1,400 creditors.
The hypnosis centers in Washington, Idaho and Oregon recently closed unexpectedly.
“I think this company has really helped a lot of people and it’s a testament to the impact that they’ve had on customers’ health,” said Kevin O’Rouke, the attorney for the local franchises.
The national spokesperson for the Iowa based company told KREM 2 they were “in the dark” about the situation until Thursday afternoon. Due to the original structure of the company, corporate, she said, does not have direct control over the privately-owned franchise operated out of Spokane.
According to documents, writing out information for all creditors on a single form would take hours. Instead, attached to court documents was a list of the creditors and how much was owed.
KREM 2 On Your Side looked over the bankruptcy court documents and found the company owes over $5.4 million to over 1,400 creditors.
KREM 2 wants to remain transparent with the fact that Positive Changes is one of our advertising clients. As a result, KREM 2 is on the list of creditors.
The documents also show the company has nearly $170,000 worth of assets. Many of the assets are equipment and inventory, while only $3,000 is cash in the bank.
A trend in the company’s profit and loss report showed that ET Research was losing money. Per their sales numbers, Positive Changes made about $70,000 less in February 2017 than they did in January.
In addition to filing for bankruptcy, an eviction noticed was posted on the door of the Spokane Positive Changes office. Several employees said the franchise was previously owned by a woman named Tanya Guenther, who sold the company.
KREM 2 confirmed through Spokane County Property searches that Tanya and Hubertus Guenther still own the building and are the landlords evicting Positive Changes.
Positive Changes has until Monday, April 24 to pay their full rent of nearly $11,000.