The allure of a soothing spa can be irresistible, especially for those among us who are battling health conditions.

A warm, bubbling retreat promises relief from pain and a sanctuary for relaxation. It's no wonder that many Australians, including seniors and those with debilitating health conditions, have turned to home spas as a form of therapy and comfort.

However, the recent collapse of a popular spa company has left many customers in a troubling situation, with their health, hearts, and wallets at stake.

According to ASIC data, Spas Direct, a company known for selling a range of spas, including plunge pools and infrared saunas, has been liquidated as of 3 June 2024.

This sudden development has sent shockwaves through the community of customers who had placed their trust—and significant sums of money—in the company's products.

Spas Direct has become liquidated, leaving many customers without paid orders. Credit: @spas4u / Instagram

The impact of this liquidation is far-reaching, with dozens of Australians finding themselves thousands of dollars out of pocket.

Among them is the family of a terminally ill girl, who had invested $25,000 in the hope that a spa would provide some comfort and aid in her rehabilitation.

The spa, unfortunately, never arrived. 'We are beyond gutted. We just wanted her to be comfortable,' the mother expressed.

Terry Bartholomai, 57, is another customer left in the lurch.

He purchased a Mini Plunge Pool for $16,000 to help manage his debilitating back pain.

Months have passed since his purchase, and the promised pool has yet to appear.

The company's statement cited an 'ongoing dispute with our third-party logistics partner' for their inability to dispatch spas from their facilities.

This has left customers like Kerri Wright, who paid over $15,000 for a spa, feeling 'angry, frustrated and disappointed.'

'Once all invoices were paid over four days, I was then ghosted, no response to phone calls and then the phones were not answered,' she said.

The situation is further complicated by Spas Direct's alleged debt of more than $1.75 million to freight company 3Sixty Global Logistics.

The logistics company holds over 500 spas and spa products in its warehouses, and the future of these items is uncertain amidst legal proceedings.

'3Sixty is [allegedly] currently owed about $1.8million for the warehousing and logistics services that it has been providing to JKJ/Sunseal Garden Spas with trading names Spas Direct (Spas Direct) during 2024,' Mark Carmody, a lawyer, said.

'360 has filed two claims against Spas Direct's related entities for the debt that it is owed.'

Some customers report malfunctioning parts, such as heaters, and a lack of follow-up service to rectify these issues.

The Spas Direct website is currently down, with a message stating that it is 'temporarily unavailable due to an ongoing dispute with a logistics company.'

This leaves customers in the dark about the status of their orders and the company's future.

The stress of financial loss and unfulfilled expectations has replaced the promise of relief.

We recommend monitoring updates from ASIC and the Queensland Office of Fair Trading for readers affected by this situation.

If you've purchased with Spas Direct and are facing similar issues, contacting consumer protection agencies and seeking legal advice is crucial.

The collapse of Spas Direct serves as a stark reminder of the risks associated with large purchases from companies that may not be as stable as they appear.

It's a cautionary tale for all consumers to conduct thorough research and consider a company's financial health before making significant investments.

Key Takeaways

• Spas Direct, a popular spa company, has gone into liquidation, leaving many customers who had already paid for products without their orders.
• Affected customers, including those with debilitating health conditions and a family with a terminally ill child, reportedly lost thousands of dollars due to undelivered spas.
• The company owes over $1.75 million to 3Sixty Global Logistics, which has lodged court proceedings against Spas Direct's related entities.
• Spas Direct trades under several names and is facing an ongoing dispute with a third-party logistics partner, contributing to the inability to dispatch spas and update their website.

Has the Spas Direct collapse affected you or someone you know? How are you protecting yourself from financial losses when making large health-related purchases? Let us know in the comments below.

 

[Luckyus]

Perhaps these sorts of firms should be paying into an escrow in the event of logistic problems.

 

[mylittletibbies]

Why do people persist on paying, in full,such large sums of money for something that they haven't received as yet.
If a company is financially viable they should be in a position to accept a percentage deposit with balance on delivery. If they can't then they shouldnt be in business.
How and why did the freight company let them get so far in debt. Utterly ridiculous. Surely before they get so far in debt you would twig that something was wrong.

 

[Cheezil]

Is there not an insurance that can be taken out when purchasing something that customer has to fork out for before it's built/finished, etc?

Why are customers losing so much momey over so many companies going bust (caravan builds is another example) & then being left inthe lurch like this? We insure against so manyotherthings, why not this?

 

[mylittletibbies]

Is there not an insurance that can be taken out when purchasing something that customer has to fork out for before it's built/finished, etc?

Why are customers losing so much momey over so many companies going bust (caravan builds is another example) & then being left inthe lurch like this? We insure against so manyotherthings, why not this?

Builders are supposed to be covered by BWI(Builders Warranty Insurance so it pays to check that they actually have it.
They pay for it, but is indirectly charged to the customer in the cost of the house. As usual when things go wrong you have to go though the insurance company and that can be a nightmare. depending on the insurance company.
There's no way I would pay for a caravan up front I'd only pay the required deposit and if they wouldn't agree to that then I would walk away. People shouldn't be in business if the don't have enough funds behind them to carry the business.
This is the same for renovation. The maximum that is allowed to be charged in WA is 6.5% for jobs from ,$75 000
to $500,000. I know many ask for more or even the lot don't pay WALK AWAY and find someone else. If they can't carry the job on 6.5% deposit until the first progress payment is due then they are not financially viable and you're setting yourself up for trouble if you hire them.

 

[Cheezil]

Builders are supposed to be covered by BWI(Builders Warranty Insurance so it pays to check that they actually have it.
They pay for it, but is indirectly charged to the customer in the cost of the house. As usual when things go wrong you have to go though the insurance company and that can be a nightmare. depending on the insurance company.
There's no way I would pay for a caravan up front I'd only pay the required deposit and if they wouldn't agree to that then I would walk away. People shouldn't be in business if the don't have enough funds behind them to carry the business.
This is the same for renovation. The maximum that is allowed to be charged in WA is 6.5% for jobs from ,$75 000
to $500,000. I know many ask for more or even the lot don't pay WALK AWAY and find someone else. If they can't carry the job on 6.5% deposit until the first progress payment is due then they are not financially viable and you're setting yourself up for trouble if you hire them.

I agree, not sure why this seems to be catching a lot of people out lately!

 

[mylittletibbies]

I agree, not sure why this seems to be catching a lot of people out lately!

The problem is that a lot of these builders/ handymen/renovator's refuse to do the job unless you pay up front.
People should not let themselves be basically backed into a corner better to wait until you can find someone who will do the job, according to the building code of conduct.
I am not saying that all builders are shonky, definitely not. Many have been caught up with supply problems, the ever increasing price of materials, and the appalling lack of subcontractors.
We have become a very greedy country.
Plumbers, electricians and the like, not all but many, charge obscene hourly rates.
Young people want to start off where their parents have finished after a lifetime of hardwork.
Very few will consider a small 3x1 as a starter home . They want the theatre room, butlers pantry, 4x2, swimming pool all the while with car loans for their four wheel drives to take their kids to school, maxed out credit cards, etc etc and then wonder why they can't manage. We have raised a very entitled generation.

 

[Cheezil]

The problem is that a lot of these builders/ handymen/renovator's refuse to do the job unless you pay up front.
People should not let themselves be basically backed into a corner better to wait until you can find someone who will do the job, according to the building code of conduct.
I am not saying that all builders are shonky, definitely not. Many have been caught up with supply problems, the ever increasing price of materials, and the appalling lack of subcontractors.
We have become a very greedy country.
Plumbers, electricians and the like, not all but many, charge obscene hourly rates.
Young people want to start off where their parents have finished after a lifetime of hardwork.
Very few will consider a small 3x1 as a starter home . They want the theatre room, butlers pantry, 4x2, swimming pool all the while with car loans for their four wheel drives to take their kids to school, maxed out credit cards, etc etc and then wonder why they can't manage. We have raised a very entitled generation.

Yer i guess, but to see it from builers side, too many customers in the past have skipped out on paying for work done/received. My cuz was a chippy/ builder & back in the good ol days he'd carry the costs until completion & wait for payment, then as things got harder (more dishonest people taking advantage) he'd bill them for materials up front & wait for labour payment (at least wasn't losing out 100% on costs). He's since retired!
My small town it's become common to ask for full payment up front for any work booked (auto electricians, wmechanics, indow specialists, etc, even tho they know my name in town as good all want payment first as too many have ripped them off or been very slow paying & they've ruined it for us honest folks unfort, like everything

 

[mylittletibbies]

Yer i guess, but to see it from builers side, too many customers in the past have skipped out on paying for work done/received. My cuz was a chippy/ builder & back in the good ol days he'd carry the costs until completion & wait for payment, then as things got harder (more dishonest people taking advantage) he'd bill them for materials up front & wait for labour payment (at least wasn't losing out 100% on costs). He's since retired!
My small town it's become common to ask for full payment up front for any work booked (auto electricians, wmechanics, indow specialists, etc, even tho they know my name in town as good all want payment first as too many have ripped them off or been very slow paying & they've ruined it for us honest folks unfort, like everything

Yes, I agree, so many not so nice people around today.
Before my husband and I started flipping houses we had a renovation business.
Like your cousin we also didn't ask for a deposit and billed at the end. I guess we were extremely lucky, we never had anybody who didn't pay when the job was completed.
I don't know why mechanics. auto electricians need to be paid up front they can just hold your car until you pay.
We had a friend who was a landscaper.
He didn't get paid for a job. He took machinery onto the properly, front yard, and ripped it all out. You are legally not allowed to do this. Kudos to him I say it made the people look like the scum they were. They said they were going to take him to court but they never did.
If people don't pay your only redress is to take them to court and then put a caveat over their house for the payment.
Problem being you have to wait until they sell to get paid, ot alternatively send the bailiff around if they have anything worth ceasing.

 

[Cheezil]

Yes, I agree, so many not so nice people around today.
Before my husband and I started flipping houses we had a renovation business.
Like your cousin we also didn't ask for a deposit and billed at the end. I guess we were extremely lucky, we never had anybody who didn't pay when the job was completed.
I don't know why mechanics. auto electricians need to be paid up front they can just hold your car until you pay.
We had a friend who was a landscaper.
He didn't get paid for a job. He took machinery onto the properly, front yard, and ripped it all out. You are legally not allowed to do this. Kudos to him I say it made the people look like the scum they were. They said they were going to take him to court but they never did.
If people don't pay your only redress is to take them to court and then put a caveat over their house for the payment.
Problem being you have to wait until they sell to get paid, ot alternatively send the bailiff around if they have anything worth ceasing.

Yes, but unfort the law always seems to protect criminals & scum bags, not decent people!