GREENSBORO, N.C. -- According to two federal tax liens, Chakras Salon & Spa in downtown Greensboro has an unpaid balance of more than half a million dollars.
The liens were posted on North Carolina's Secretary of State's website Tuesday afternoon, just one day after the business abruptly shut down. The two documents show Chakras Inc. owes two separate unpaid balances totaling $505,007.19 and $143,374.78. If you add them up, the total is roughly $648,000.
Owner Tim Smith confirmed he shut the business down Monday.
“Yes, we’re unfortunately closed," he told WFMY News 2. "A very sad day for all of us here. Perhaps we just were no longer relevant downtown.”
In another phone call with WFMY News 2 Tuesday, Smith said he was hopeful last week the business could stay open but realized Monday that wasn't an option and decided to shut it down.
The closure has a lot of clients worried about what happens to their gift certificates. Smith says he doesn't have that answer just yet but is working to find a solution. He says he might try to work with other businesses downtown to try and see who will accept them. There have also been several businesses coming forward saying they will honor Chakras certificates.
"I feel like for me if somebody actually gives me a gift certificate it’s like this big build up and now it’s a huge let down," explains Crystal Jones, owner of Luxury of Greensboro, a spa on E. Cornwallis Dr.
She says it's sad to see another business shut down and wants to make sure clients don't lose out. She's willing to accept certificates at her spa and she also says Chakras employees are also able to apply to work there.
The spa has been located in downtown Greensboro for the past 17 years. It has been one of the main stay businesses as Greensboro has done major makeovers of its downtown to attract more people.
It opened on State Street and moved to downtown Greensboro in 2001.
Smith says he hopes to know more about what clients can do with gift certificates by the end of the week.
WFMY News 2 is working to break down the tax liens. Check back for updates.