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By Katie Byard and Phil Trexler
Beacon Journal staff writers
POSTED: 08:14 p.m. EST, Jan 07, 2009
The complaints continue over the abrupt closing of the Carousel Dinner Theatre.
Many were left with worthless tickets and no sign of relief.
State Rep. John Otterman, D-Akron, said Wednesday that he plans to send a letter to the Ohio attorney general's office asking if there is any help the state agency can provide.
Otterman said he has received about a dozen complaints from ticket holders, some of whom claim they bought tickets in the days leading up to Christmas.
''People are just frying, they're upset,'' Otterman said. ''It's not like it's a $10 or $20 gift card.
''I think [Carousel owners] had a general idea that things were going south, and they were going out of business, yet they were continuing to sell these gift certificates several days before Christmas.''
Joseph Palmer, owner of the Carousel in Akron, said the decision to close the theater after 35 years of operation, was made Dec. 30 after the ''reversal of certain stakeholders' written or verbal promises,'' decreasing sales and rising expenses.
He said no tickets were to be sold for the 2009 season after the 30th, and on New Year's Eve staff members were told of the pending closing.
On Dec. 31, however, at least one customer said he was sold two seats for a 2009 show. Craig Stripe of Barberton said he was sold such a ticket.
He is awaiting a refund on the gift certificates used to make the purchase.
''They knew at the time they were just taking my money,'' he said. ''I'm mad as hell.''
About $200,000 worth of tickets had been sold for the 2009 season, Palmer said.
Those who used a credit card to purchase seats are being asked to contact their card company. Those who paid with cash are considered creditors who must wait until larger debt-holders are paid.
In an e-mail sent Wednesday, Palmer said he does not ''know how any sales got through'' for 2009 shows after Dec. 30. He also had no comment on Otterman's request for a review by the attorney general.
Manilath Southammavong, a consumer educator with the attorney general's office, said the state's gift-card law ''prohibits businesses from selling gift cards that expire in less than two years from their issue dates, but if a store closes there is not much protection.''
Under federal law, she said, consumers can seek reimbursement from credit-card companies.
If the theater files for bankruptcy protection, gift-card holders would be considered unsecured creditors. They would wait in line behind secured ones, Southammavong said, such as those who hold mortgages on the real estate.
''Consumers are paid last, if they are paid'' at all, in bankruptcy cases, she said.
Carousel has not filed for bankruptcy. The company said Monday it has debts of more than $6.4 million and assets of nearly $2.7 million.
One unidentified creditor, owed in excess of $1.8 million, holds a mortgage on the theater's real estate and a lien on all other assets.
A second mortgage creditor is owed more than $1.7 million.
An asset liquidation sale isn't expected to net much revenue after those top two debts are paid. Palmer has said he intends to sell the business's assets and pay off creditors. Ticket holders fall in line behind mortgage lenders.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com. Phil Trexler can be reached at 330-996-3717 or ptrexler@thebeaconjournal.com.
The complaints continue over the abrupt closing of the Carousel Dinner Theatre.
Many were left with worthless tickets and no sign of relief.
State Rep. John Otterman, D-Akron, said Wednesday that he plans to send a letter to the Ohio attorney general's office asking if there is any help the state agency can provide.
Otterman said he has received about a dozen complaints from ticket holders, some of whom claim they bought tickets in the days leading up to Christmas.
''People are just frying, they're upset,'' Otterman said. ''It's not like it's a $10 or $20 gift card.
''I think [Carousel owners] had a general idea that things were going south, and they were going out of business, yet they were continuing to sell these gift certificates several days before Christmas.''
Joseph Palmer, owner of the Carousel in Akron, said the decision to close the theater after 35 years of operation, was made Dec. 30 after the ''reversal of certain stakeholders' written or verbal promises,'' decreasing sales and rising expenses.
He said no tickets were to be sold for the 2009 season after the 30th, and on New Year's Eve staff members were told of the pending closing.
On Dec. 31, however, at least one customer said he was sold two seats for a 2009 show. Craig Stripe of Barberton said he was sold such a ticket.
He is awaiting a refund on the gift certificates used to make the purchase.
''They knew at the time they were just taking my money,'' he said. ''I'm mad as hell.''
About $200,000 worth of tickets had been sold for the 2009 season, Palmer said.
Those who used a credit card to purchase seats are being asked to contact their card company. Those who paid with cash are considered creditors who must wait until larger debt-holders are paid.
In an e-mail sent Wednesday, Palmer said he does not ''know how any sales got through'' for 2009 shows after Dec. 30. He also had no comment on Otterman's request for a review by the attorney general.
Manilath Southammavong, a consumer educator with the attorney general's office, said the state's gift-card law ''prohibits businesses from selling gift cards that expire in less than two years from their issue dates, but if a store closes there is not much protection.''
Under federal law, she said, consumers can seek reimbursement from credit-card companies.
If the theater files for bankruptcy protection, gift-card holders would be considered unsecured creditors. They would wait in line behind secured ones, Southammavong said, such as those who hold mortgages on the real estate.
''Consumers are paid last, if they are paid'' at all, in bankruptcy cases, she said.
Carousel has not filed for bankruptcy. The company said Monday it has debts of more than $6.4 million and assets of nearly $2.7 million.
One unidentified creditor, owed in excess of $1.8 million, holds a mortgage on the theater's real estate and a lien on all other assets.
A second mortgage creditor is owed more than $1.7 million.
An asset liquidation sale isn't expected to net much revenue after those top two debts are paid. Palmer has said he intends to sell the business's assets and pay off creditors. Ticket holders fall in line behind mortgage lenders.
Katie Byard can be reached at 330-996-3781 or kbyard@thebeaconjournal.com. Phil Trexler can be reached at 330-996-3717 or ptrexler@thebeaconjournal.com.
Comments
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solon, oh
Posted 09:39 PM, 01/07/2009
If this is the Joseph Palmer who was a partner at an Akron based CPA firm, I am not shocked by this behavior. Didn't seem to be a terribly ethical guy.
Posted 10:55 PM, 01/07/2009
CPA board needs a call, then.
These people need to be taught a lesson.
