St. Louis-based Fig., a provider of cosmetic Lipodissolve fat-melting injections, experienced rapid geographic and revenue growth after opening its first center in Chesterfield, Mo., in 2005. Its operations expanded to 18 centers in nine states by late 2007 when the company was on track to generate about $60 million to $70 million in annual revenue.
In fall 2007, however, the St. Louis Business Journal found a growing number of patients were raising concerns about the company’s medically supervised procedures and business practices. By late 2007, complaints to the Better Business Bureau’s office in St. Louis alone numbered in the hundreds as unsatisfied patients cited painful side effects, ineffective treatments and trouble securing refunds despite a money-back guarantee.
Sales declined sharply in late 2007, but the mounting costs of Fig.’s expansion and patient refunds continued. On Dec. 7, a key outside investor made a last-minute decision not to provide a needed infusion of cash to shore up the operations. Fig. abruptly shut down its operations the same day with no warning to employees, patients or vendors. Some 500 employees were sent home without a job, thousands of patients never received or completed treatments they had paid for up front, and scores of creditors were left with millions of dollars in unpaid bills.
Fig. has subsequently filed for bankruptcy. Its chief executive has now overseen three businesses that have gone bust in the past three years.