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Gabowitz Declares Bankruptcy

The electronics retailer declared bankruptcy at the beginning of August.

 

After decades in East Brunswick, Gabowitz TV & Appliance Center has closed.

According to a notice on the front door, the store filed Chapter 7 Bankruptcy on Aug. 2 and a meeting with creditors is scheduled for Sept. 11 at the Clarkson S. Fisher Federal Courthouse in Trenton.

An East Brunswick institution since 1934, Gabowitz TV & Appliance carried televisions and home appliances in the latest styles and brands, including Panasonic, Whirlpool and GE. The store provides free local delivery and removal as well as complete installation services. Customers can finance their purchases at zero percent interest for one year.

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Related Topics: Bankruptcy, Chapter 7, and Gabowitz electronics

Douglas Brown

8:20 am on Tuesday, August 14, 2012

It doesn`t surprise me since Route 18 is a mess.
Illegal signs everywhere as Route 18 looks like the strip in Vegas, garbage and litter up and down and on the off ramps,grass not mowed,empty stores especially abandoned gas stations look like the slums, major paving on its way to tie up traffic (will probably start just before the Christmas holidays),Golden triangle fiasco will keep more shoppers away as that slowly progresses,Exit 9 construction will cause bottlenecks North and South for years as that work starts soon.

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John Romano

10:08 am on Tuesday, August 14, 2012

....maybe a little 'off-topic', but you touched on something that has had me perplexed and more than a bit disgusted for quite some time...the signage issue. I know that some of the signs may not be "illegal" in the strict sense of the word....but maybe we can soften that term with: Ugly, Shoddy, Cheap, Garish, Flamboyant, Flashy, Gaudy, Ostentatious,.....(please....feel free to join in any time...)

....having a Commercial / Retail Architectural Review Board (A.R.B.) for the sole purpose of getting some form of cohesive "theme" to the building facades and associated building & site signage along the Rte 18 corridor could be a huge step in developing a positive unified identity. ( I am very specific to the Commercial / Retail development on Rte 18. I think that an A.R.B. has no place whatsoever in telling residential owners what color to paint their home...).

...that said...it's perhaps just a "sign of the times" that Gabowitz will cease to exist. With a changing area demographic and associated shrinking consumer base...they probably had little recourse.

Janet Whitehouse Baptista

8:58 am on Tuesday, August 14, 2012

Shame on you, Gabowitz! We purchased 5 appliances from them last year, and paid an extra $500 for extended maintenance contracts. Now we receive a letter from the maintenance company to say Gabowitz never paid them, therefore, we have no coverage. Shame on you Kenny Cohn!

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Dan F

11:41 am on Tuesday, August 14, 2012

And you didn't take them to court or report them to the BBB?

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Janet Whitehouse Baptista

11:56 am on Tuesday, August 14, 2012

Dan, this all just happened this week. I'm trying to figure out what to do next, and a report to the BBB is probably next.

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Janet Whitehouse Baptista

12:34 pm on Tuesday, August 14, 2012

I just began to file an online complaint with the BBB and got this pop-up: "BBB does not handle complaints with companies that are in Chapter 7 bankruptcy." I'm not interested in taking them to court and am wondering if I have any other options, i.e. how can I get on the list of customers to whom Gabowitz owes money?

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Christopher

2:33 pm on Tuesday, August 14, 2012

Janet, unfortunately in these situations, folks like you end up being the very last in line and almost never see any money back. God only knows how many creditors Gabowitz has. From what some people are saying happened to them, I wouldn't be surprised if a criminal investigation eventually gets launched. That said, if you feel compelled to take action, the BBB provides these recommendations:

http://www.bbb.org/denver/business-reviews/jewelers-retail/industry-tips/when-a-business-closes-or-goes-bankrupt

Good luck!

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David M

10:46 pm on Friday, October 26, 2012

What was the name of the maintenance contract company

Thanks

bigdave60@optonline.net

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Paula Walenta

11:28 am on Monday, November 5, 2012

I also bought appliances with extended warrantees, can you please provide me with the name of the extended warrantee company?

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Facach

12:48 pm on Saturday, February 9, 2013

Gabowitz has been selling ship shod , seconds, damaged goods to an unknowing customer for years. I am so glad to hear they are out of business and hope they get the same misery that they've given others over the years .

John Romano

9:06 am on Tuesday, August 14, 2012

....so, anyone taking bets on what replacements might be able to "fit" into that building space? Given the prowess of the economic development wizards in E.B., and the direction in which this town is going.....my money is on 2 nail salons, a "We Buy Gold" place, and a Check Cashing window. Or..are my projections a bit too lofty?

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Liti Haramaty

9:46 am on Tuesday, August 14, 2012

Would love to see Trader Joes... but know there will be another mattress store and another fast food chain...

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RockGoddess

10:37 am on Tuesday, August 14, 2012

You are so right on John!! It seems totally fit for sure but unfortunate to have the same multiple stores. They need to really rethink and carefully plan out the area prior to putting in the same stores. Maybe they should take an Opinion Poll for the E. Brunswick residents first beforehand :)

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Myrna

5:16 pm on Tuesday, August 14, 2012

Trader Joe was approached a few years ago and declined to open in East Brunswick. They said we did not have the right demographic.Wegmans said pretty much the same thing. So uness the township thinks of some way to make an offer these more desirable businesses can't refuse, it's a choice between the same old low-rent type businesses or empty storefronts.

Ed Carduner

10:02 am on Tuesday, August 14, 2012

With a fine retail establishment such as Walmart coming to town, I'm sure that an equally distinctive store will move into the Gabowitz building.......such as pawn shop! Just think, than East Brunswick can be known as an economic landfill.

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Helen Putnam

10:17 am on Tuesday, August 14, 2012

As an East Brunswick resident and an employee at a retail store on Route 18, I cringe at the look, appeal and the "draw" of this roadway. Enough with the fast food chains, etc., we really do not need White Castle. We need to incite incentives for consumers to shop us!!!!

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Kevin Wyman

10:31 am on Tuesday, August 14, 2012

It is sad that Gabowitz has wilted under the pressure to make ends meet and neglected customers like Janet. Customer service and product knowledge was one of the things that set them apart from all the big retailers. Personally, my wife and I had good experiences with our past appliance purchases from them; wishful thinking would have them restructure their debt and possible reopen, but they'd be crazy to do so with Walmart coming to town.

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Myrna

5:28 pm on Tuesday, August 14, 2012

"It is sad that Gabowitz has wilted under the pressure to make ends meet and neglected customers like Janet."

Gabowitz didn''t just wilt under pressure; they took Janet's money under false pretenses and kept it. That's called stealing. There should be criminal penalties for their actions in addition to the bankruptcy.

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Kevin Wyman

6:31 pm on Tuesday, August 14, 2012

Myrna, agreed that "stealing" better describes what was done to these extended warranty customers. However, it makes me no less sad that a once reputable small business became desperate enough to resort to such tactics. Recently, someone at Rutgers posted to the "personals" listserver at Rutgers recommending Gabowitz because they had made an extra effort to quickly deliver an air conditioner to the poster's elderly mother during the hot weather when initially it was said that it could not to be delivered/installed for some longer time. It was the kind of thing I had always heard that Gabowitz would do for their customers. Perhaps, in retro spec, this time it was just that Gabowitz needed the money fast. Anyway, perhaps the best I can hope for those cheated by Gabowitz is that they don't have any problems with their appliances...

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Jessica B

8:15 pm on Wednesday, August 29, 2012

This situation should all teach us to support our local businesses. These are the people that support your local community. I am not from East Brunswick New Jersey but after reading these comments it seems that this community is in trouble. If you don't stick together, their will not be a community anymore. Soon you will be surrounded by "Walmarts."

Anthony J. Riccobono

10:40 am on Tuesday, August 14, 2012

How about a mattress store that does nails and buys gold? The mayor claims that business has improved on 18 but the figures he uses always includes the potential tarnished triangle store which isn't in yet.Why don't we just move some old reliable stores around again? When and if the BIG BOX store comes in what will move out?It's a shame that such a trusted company with a long history in East Brunswick may go under and leave the people that trusted them in the lurch.Long in the past Adrian Eisner handled consumer problems in the township I don't know if anyone does now but some one should ensure the rights of the people.

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ron regano

11:33 am on Tuesday, August 14, 2012

Long in the past we had a sewer authority with a bloated employee chart. I don't know if anyone then did but some one should ensure the rights of the people. Oh they did.

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Anthony J. Riccobono

6:26 pm on Tuesday, August 14, 2012

The offices of the Authority had a director a secretary two accounts receivable clerks a clerk typist and an inventory clerk which also worked accounts receivable everyone's job overlapped.We also had a p/t comptroller.Hardly a bloated staff. Right now your water rates are being kept artificially low using a reserve built up over years once that's gone our rates will go up. Sewer pump stations are not being upgraded as recommended by our engineers. Again the rates are being kept artificially low.
Personal attacks are never appropriate, the discussion at hand concerned Gabowitz and business problems along Route 18.Why not stick to the issues argue or make comment to what is going on. Do you believe Route 18 is doing better? Do you believe Walmart and 400 apartments will be an asset to the town and the school system?.Do you believe the town should have someone look into and possibly aid people with consumer affairs or possible a little legal advice to help them in getting satisfaction from Gabowitz. I think they should.

RockGoddess

10:41 am on Tuesday, August 14, 2012

I had a very bad experience w/Gabowitz a few years ago with a major purchase and the customer service handled the situation very inappropriately and so I am sorry to say, I am not surprised at all.

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Robert Hobbs

11:13 am on Tuesday, August 14, 2012

Gabowitz going out is sad but reflects slolely on how store was operated. Bad service, high end products in a market when most people are suffering financially and are buying simpler appliances. The doomsday approach of some on this blog is so unrealistic. Do you know what the unemployment rate is?

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Dan F

11:54 am on Tuesday, August 14, 2012

We all want good retailers, but are we supporting the businesses already there the best we can? I recently needed a new battery for my laptop, and got it at Batteries Plus on 18 instead of going to the Apple store. It was actually a little more money than Apple, and it was an aftermarket battery instead of the real McCoy. But I justified it by saying I was giving my business to a local store (granted, a chain) and it saved me a ride to Freehold.

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Christopher

12:16 pm on Tuesday, August 14, 2012

There's a lot of great suggestions that come out of these discussions. (signage issues, architectural review board, etc.) East Brunswick is a fairly small town. I have to think it can't be too difficult to get the Mayor's ear and get this dialogue going with him. Has anyone attempted to do that?

As for Gabowitz, I knew there was a problem because a friend of a friend told a horror story of his money being taken up front, and then no delivery ever came, only for him to go to the store and find the doors permanently shut. I looked on Yelp and Google Reviews and noticed others complaining about the same issue. (Though Yelp for some reason filtered most of those out.) Anyway, it's a shame to see a family business that operated that long go under in such a terrible way. My condolences to anyone who got screwed in the process.

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Dan F

12:20 pm on Tuesday, August 14, 2012

Yelp will filter reviews out from users who have not submitted many. If you sign up for the purpose of trashing a particular business (as it appears people are doing here), it will get filtered.

Christopher

12:20 pm on Tuesday, August 14, 2012

John S. -- I also have heard a rumor that a plan is in place to completely remodel the Route 18 corridor between Old Bridge and New Brunswick, albeit starting in 2015 or something like that. I'm told the remodeling would be similar to the stretch of Route 18 in New Brunswick that goes through Rutgers University. That would be a remarkable thing if true. Any chance you can dig into this more?

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Lisa M.

1:01 pm on Tuesday, August 14, 2012

I too bought an extended warranty contract and just found out Gabowitz hasn't paid and I therefore do not have coverage either....shame on you Gabowitz!!

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Myrna

5:04 pm on Tuesday, August 14, 2012

If you paid with a credit card, the charge will be removed from your account.
IMO, credit cards are the way to go when purchasing an appliance. Most companies- (Visa, Am Ex) will double the manufacturer's original warranty, so you don't need to buy a service contract.

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Janet Whitehouse Baptista

5:26 pm on Tuesday, August 14, 2012

Lisa - did you get a letter from Repair Guardian regarding non-payment? That's who sent ours. Let's keep in touch - maybe we can help each other in this matter. janet.baptista@yahoo.com Good luck!

Janet Whitehouse Baptista

5:24 pm on Tuesday, August 14, 2012

Christopher K. - thank you for the info! Myrna - worth checking into but it'll be a stretch for us. Lisa - if yours was a more recent purchase, maybe you'll have luck with your cc company.

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Madzi

6:04 pm on Tuesday, August 14, 2012

What a crying shame. I'm happy my daughter and her family are getting out of EB--this place is going to pot rather quickly. I just wish someone with clout in EB had a modicum of vision and the interests of the residents at heart.

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gary rivers

1:18 am on Wednesday, August 15, 2012

Gabowitz had the lowest prices in this entire area. And we recently bought a GE stove and couldn't find our model cheaper anywhere. It's sad to see a successful business come to a bitter end. OK the storefront wasn't beautiful but if you want shabby try Elizabeth, NJ. If you want to shop in new surroundings you will pay top dollar for your purchases. It was definitely wrong not to extend the warranties when the money was paid to do so. But when bankruptcy is closing in people react the same as a drowning person. Desperately clinging to everything and anything to stay afloat. I've seen it firsthand from a family member. Not very pretty. But the recession is over NOT. And they didn't build that business anyway. Just ask the president of the US.

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Myrna

10:24 am on Wednesday, August 15, 2012

re: "they didn't build that business anyway. Just ask the president of the US."

The point the Preisent was making is that when we succeed, we succeed because of our individual initiative, but ALSO because we do things together. There are some things, just like fighting fires, we don't do on our own. I mean, imagine if everybody had their own fire-fghting service, had to hire their own police force, and pave the roads in front of their businessses on their own. .Obama then cited the funding of the G.I. Bill, the creation of the middle class, the construction of the Golden Gate Bridge and Hoover Dam, inventing the Internet, and landing on the moon as examples of what he was talking about.
The trouble with the President's remarks? They extended beyond the 20-second attention span of this campaign. And when the EDITED version made the rounds, a conversation about social contracts was instead reduced to silly charges of socialism.

Paul F

10:37 am on Wednesday, August 15, 2012

maybe it will be another head (smoke) shop. Since the northbound side has 2, it's only right the southbound side gets one.

I wonder how Derby in Highland Park is doing - hopefully they'll gain some business as a result of this.

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TheBigB

3:30 pm on Monday, February 4, 2013

Paul - I don't know how they're doing, but I can personally attest to the fact that owner Mark Berkowitz is a straight-up, no B.S. guy. I went to school with Mark, and he wasn't even one of my drinking buddies in the old days. BTW → Tell Mark that "THE BIG B." sent you, he'll know who I am.

Anita V

4:44 pm on Wednesday, August 15, 2012

I too got a letter that my warranty was not going to be honored, as they didn't get paid. However, we did get good prices and services from Gabowitz over the years that I have been in East Brunswick. As far as what will come instead of Gabowitz????? I think Mayor should think/try to get some good restaurants (which normally requires a liquor licenses), and not fast food chains. We have to go to other towns for fine dinning. We really could use a Mexican restaurant in town. Restaurants offering different cuisines would be great. Instead of Nail Salons etc. I am also all for Whole Foods, Trader Joe's, Wegmans etc.Again have to travel to other towns for them.

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Lisa G.

9:53 am on Friday, August 17, 2012

Soooo sad. I have been buying all of my appliances there for years. The last time I shopped there was 2 years ago for a stove, dishwasher, and microwave. It was always the store you went to for having great pricing, a full line of manufactures to choose from, as well as very friendly and knowledgable staff to work with you. It is so sad that such a reputable store( for so many years) has resorted to cheating so many of its devoted customers. I guess that I will be going somewhere else for all of my future appliances.! As one other blogger said, band together and see if in numbers maybe something can be done. Good Luck to All!!!

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Madoff Victim

11:33 am on Friday, August 17, 2012

Our empathy for those whose money was paid and warranty service not obtained. You feel surprised, and betrayed, especially from someone you trusted. We dealt with Kenny Kohn and Gabowitz for 20 years, purchasing numerous appliances. We always felt that we were treated royally by Kenny and crew. He was always anxious to please, often going out of his way to take care of his customer(us). When our refridgerator stopped working and all of our food was going to spoil we ordered a new fridge from Kenny. But it could not arrive from the distributor for a few days. Kenny had a temporary fridge delivered that day so our food would not spoil. We made purchases from Gabowitz not only for their fair prices, but rather because of Kenny Kohn, who we found to be a genuinely nice, caring and very decent human being (a rarity in this day and age). We are sorry to hear of people's recent, unfortunate stories of negative experiences. We are also very sorry to hear of the difficulties that Kenny Kohn and Gabowitz are going through. Things must be desperate to close a business that has been operating for so many years. Hopefully everyone's health is OK and that is not behind the closing. We are wondering where we can find another Kenny Kohn and another Gabowitz to do business with. Good luck to all (including you Kenny Kohn).

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garry

5:11 pm on Friday, August 17, 2012

There is Better Living in Jamesburg where we got are appliance's from after this whole mess started.

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Lisa M.

11:27 pm on Friday, August 17, 2012

He may have been a decent and it was a great place to shop, but looking for another Kenny Kohn to shop with?? Ridiculous! He ripped us off...period! He took money and did not deliver product, that is stealing, plan and simple.

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Jean Vitta

9:23 am on Wednesday, August 22, 2012

it represents the further decline of the town. just think of the lovely sight driving north on 18 when they build the big box store with a sign saying JM EB URBAN RENEWAL LLC. will add to the other postings for head shops, tattoo parlors, smoke shops and vacant stores. time to get out now before it starts.

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Myrna

10:08 am on Wednesday, August 22, 2012

Another example of the 3rd rate businesses coming to East Brunswick- a restaurant new to town , " The Tilted Kilt" is being built in the new section of Brunswick Square Mall,next to Panera Bread. I had never heard of "The Tilted KIlt," so I looked it up online. It's Hooters in kilts. The chain offers pub food- burgers, nachos, fish and chips , and beer served by young waitresses wearing skimpy bras and tiny kilts. The city of Evanston, Illinois sued sucessfully to keep them from opening downtown. A group of women employees are suing the chain for sexual harrassment. They don't seem to be especially successful as a number of franchises have had to close. But that's what's coming as part of the "upgrade" to Brunswick Square.

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Phylis Landers

2:05 pm on Wednesday, August 29, 2012

Kenneth Kohn was running a ponzie scheme for more than one year prior to filing bankruptcy. Store policy was 50% paid @ time of placing the order. That 50% of your money is what he was literally living on, for all personal needs. The delay in delivery was because your appliances were NEVER ORDERED from the manufacturer. I figured this out with a little "inside information" from a former employee. I confronted Mr. Kohn and appliances were delivered the next day!! I told him that I had my own way of dealing with people like him, cleared out his "upstairs office" and gave it to him straight from the hip. God helps those who help themselves! I know exactly how you feel and I did not purchase an extended warranty (never do that anyway until the unit is at least 1 year old).

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Hattie

10:54 pm on Wednesday, August 29, 2012

Disgruntled, jobless employees aren't always the best for information. You can't just make things up and spread things like that. It's just as wrong as what you are accusing them of doing. No one lived on your money. That would show immediately if it was the case. That's clearly not what happened. Your money goes into an account. Then appliances are ordered and they get terms up to 90 days to pay for them with the manufacturers. So your exact dollars don't actually go to your appliance. It's the same in ANY business whether big box or small independent. It's not a ponzi scheme. It's business and in a bad economy it's failed business. It's sad for everyone involved. It's also not considered stealing if the money went to other orders. Sad, but true...

Christopher

11:01 pm on Wednesday, August 29, 2012

Hattie, you're so wrong. Just wait it out a little longer and the evidence will emerge that the guy was a total crook. (And may very well face criminal charges.) Dont go out on a limb for this guy.

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Hattie

10:26 am on Thursday, August 30, 2012

Christopher, PAPER TRAILS ARE THE ONLY EVIDENCE. Hearsay and people's opinions mean nothing. Someone mentioned a country club membership...it's just hearsay but at a networking event I was told he hadn't paid his dues in a LONG time from someone on the board. His cars were repossessed also a long time ago. It's public record that his home and business were both in foreclosure. So where is it that he's crooking? If no personal bills were paid, where the heck do you think the money was going? Back into the business to try and make it work. There is absolutely nothing criminal about that. It's just a failed business. It sucks for everyone but it's not complex and crazy. It happens all the time. It's not like the guy rode off into the sunset in his helicopter with wads of cash. From what I would assume he's broke. I think the problem is that people want to come up with the ultimate conspiracy theory for entertainment. It just doesn't appear that any of that happened here.

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Myrna

12:42 pm on Friday, August 31, 2012

"Where the heck do you think the money was going? Back into the business to try and make it work. There is absolutely nothing criminal about that. It's just a failed business."
If it turns out to be true that Gabowitz was accepting money from customers up until the day they filed for bankruptcy, that has to be fraud, no matter where the money went.

Ken kohn

8:34 pm on Thursday, August 30, 2012

Consumer fraud in nj pays triple damages plus legal fees and goes past the corp veil to go after ken and mike kohn personally. Also file police reports in new Brunswick and say hi to ken at the sea bright country club were he goes with everyone's money.

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Chris

9:43 pm on Thursday, August 30, 2012

Please explain how consumer fraud would pay? With what money if there is no money? You can just make money appear that doesn't exist. Oh and as for his son...he was an employee there. He had no ties to the business other than a weekly paycheck. No different than that fine little lady at the front door. So you'd be barking up the wrong tree with that one.

Ken kohn

10:28 pm on Thursday, August 30, 2012

If consumer fraud is proven you can go after an individual. Meaning they can be personally liable. So you would force a lein on them personally. Also in nj it can not be erased by bankruptcy. So for those people who think that ken and mike knew they were going out of business and never intended on delivering the merchandice there are other routes other than the gabowitz bancruptcy court hearing at the end of sept.

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Chris

11:39 am on Friday, August 31, 2012

PSA: A lien or a judgement doesn't mean anything if the person it is against has no assets. The best bet if you're out money is to wait out the auction and see if you make it in line to collect anything.

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