Anyone else get screwed by CityDeals?

[Deadeye008]

We sold some deals through CityDeals for our photography company. They were late in paying us for a while and now they have closed their doors still owing us over $1,200. They sent a letter out on the 30th saying they fully intent to pay us the money we are owed and to contact them through email to set up a meeting with them to figure out a payment schedule but I haven't heard back from them. I'm no legal expert so any advise would be appreciated. We sold 6 deals through them for wedding packages and have already shot 3 of the weddings. They did send us a check for $500 about 2 weeks ago but still owe us the amount stated above. I know there are a lot of people who bought deals through them that are being turned down now by merchants. :angryfire:

[JONBOYLEMON]

Sure does put the merchant in a pinch!

Quite the scheme if you think about it.

Glad I dont have anything from them sitting in my wallet! I would not expect someone to honor the coupons.

[DiscGo]

Bummer. I didn't know they had closed. I still have some certificates which I haven't used. I guess those will now go to waste.

[trackrunner]

you are now in accounting terms a liability. since they closed their doors, which may mean they are bankrupt, then you will be paid when all assets of the company are sold in historical order. which means if there is any $$$ left over the lawyers will take it.

you could try getting your foot in the door and saying you'll take partial payment. you could also see if there will be a restructuring. the management team that try's to turn it around may request from every creditor/liability a reduced payment or force ch 11 bankruptcy reorganization to force a reasonable debt for the company to operate.