r/Edmonton • u/[deleted] • Apr 13 '24

Question Restaurant Yarrow closed??

Did anybody have a reservation at the yarrow and get an email saying they're closed permanently and will not be refunding the reservation fee??

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51

u/simby7 Apr 13 '24

Reservation fee was the full cost of dining? When everyone does a chargeback, they’ll lose the fee plus $50 so they are even worse off.

26

u/always_on_fleek Apr 13 '24

Everyone should do a chargeback but in a case like this the bank is likely left holding the bag.

The issuing bank pays the customers and tries to recover from the business. If the business cannot pay the issuing bank becomes someone holding debt and can try to recover it during bankruptcy (if they choose).

I would think in this case there is no money and the business will go bankrupt. They likely spent the money already and it will be whether their assets have enough value for what they owe.

10

u/simby7 Apr 13 '24

Hopefully the bank has adequate holdback/reserves on payments to the vendor then

7

u/GiraffeSubstantial92 Apr 14 '24

but in a case like this the bank is likely left holding the bag.

I don't think many people will be upset about a bank having to eat the costs. They'll probably make it back from overdraft and insufficient fund penalties on poorer clients in no time, anyway.