Posted on: Saturday, November 30, 2002

Aveda reopens 2 locations here

By Dan Nakaso
Advertiser Staff Writer

Malama Salon & Spa Ltd. reopened yesterday under new ownership after bankruptcy forced the operation to close for more than a week.

The 90-plus employees at the two sites — in Manoa and at Ala Moana Center — all will be rehired by the new owner, Aveda Corp., a company spokeswoman said.

Malama was a local licensee of Aveda, a Minneapolis-based cosmetics company known for producing plant-based hair, skin and body products.

Malama opened in 2000 to much fanfare, but filed for bankruptcy reorganization in September, estimating its assets at $2.5 million and debts at $5 million.

Although profitable, the operation suffered when a major investor pulled out after Sept. 11.

Aveda will operate Malama under Chapter 11 bankruptcy, pending confirmation of its reorganization plan.

"Aveda's and Malama's mission is all about caring for the world we live in and putting people first," said Aveda spokeswoman Karen Wilkin in a statement.

She said their No. 1 priority is "to ensure that our valued Malama customer and the people who serve them are properly cared for."

Malama issued thousands of dollars worth of gift certificates, which Aveda plans to honor.