Sacramento, CA – Power Balance Arena Marketing Partner files for Bankruptcy
Sacramento, CA – - Power Balance, the company that won the naming rights for the Sacramento Kings arena early 2011 has bit the dust and is now seeking bankruptcy protection by filing for Chapter 11 bankruptcy or “reorganization bankruptcy.” 
Power Balance has sought bankruptcy protection after ponying up a $57.4 million settlement. The settlement was confirmed by the company lead counsel; Kevin Boyle of Panish, Shea & Boyle. The settlement is the result of a class action lawsuit filed by angry customers who had complained of being ripped off due to the deceptive advertising campaigns of the company.
A bit of history about the Power Balance, the company has made a killing by selling hologram wristbands and pendants that claim to tune in with body’s energy and therefore improve one’s performance. Along with that claim they added some flashy advertisement featuring athletes like Shaquille O’neal and David Beckham; marketed it to the ever celebrity-crazed, gullible consumer who will blindly believe and buy anything that a celebrity endorses and voila, Power Balance had struck oil. Unfortunately for today’s society, everyone has to learn the hard way that you need size, strength, talent, endurance and all those other characteristics that make athletes great. You cannot substitute it with a trinket and then believe you will become Superman or Iron Man.
But going back, every customer can get back the $30 that they paid to buy the product and an additional $5 shipping fee. Meanwhile, Power Balance has filed the Chapter 11 bankruptcy in the hopes to save the company and its assets. Chapter 11 bankruptcy is similar to Chapter 13. The difference is that in Chapter 11, it is the type of bankruptcy that is utilized by businesses and organizations. So by filing a Chapter 11, the company can still be a debtor in possession of their assets with the supervision and jurisdiction of the courts.
As for the Sacramento Kings worrying about the financial woes of their marketing partner; their spokesperson, Chris Clark, does not seem to be fazed. According to Chris, “We maintain close communications with Power Balance and are aware of their decision to file for voluntary protection available to them through the courts.” He further added, “They have been good partners since day one and are understandably taking steps to put the company in a position to continue innovation in the performance technology sector. They have assured us of their commitment to the Sacramento Kings and the surrounding community and we expect to continue our productive partnership through this process and into the future.”
With that said,the Sacramento Power Balance Arena will retain its name and still continue to work with the company … unless a new marketing partner comes along with a promising offer perhaps?
