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10:40 PM Tue, Jan. 15th

RESA Wearables’ future unclear

Prescott-based start-up in financial, legal binds

Resa custom shoe insert kiosks measure your feet on-site and create insoles for you while you shop. (RESA Wearables/Courtesy)

Resa custom shoe insert kiosks measure your feet on-site and create insoles for you while you shop. (RESA Wearables/Courtesy)

It’s been a difficult couple of months for RESA Wearables and those who used to work for the company.

The Prescott-based start-up manufactures mobile kiosks that 3D print orthotic inserts for shoes.

The enterprise began less than two years ago with support from local entities like the City of Prescott, Yavapai College and the Northern Arizona Council of Governments. It quickly grew in size and scope, leveraging partnerships with Costco and Walmart to place its kiosks in retail stores throughout the country.

In late September, the company began to pare back the number of employees from about 120 to 100 as sale goals weren’t being met, according to John Dahl, Chief Administrative Officer and Inside Counsel for RESA Wearables.

A major disruption in business then occurred when a civil lawsuit was filed by Connected Technology Solutions LLC (CTS) against RESA Wearables and Costco on Oct. 18, according to Maricopa County Superior Court records. RESA quickly filed a counter claim against CTS, which is the company that makes the scanning kiosks RESA relies on to provide its service.

This ongoing dispute has caused RESA Wearables to freeze most of its operations and layoff nearly all of its employees until the matter is resolved. It has also forced the company to delay payment to many of those former employees, as well as to those who have done contracted work for them.

Several of those unpaid parties have called or emailed The Daily Courier to notify us about the situation.

One of the former employees, Robert Blakeley, said the mass layoff occurred on Oct. 31 and the last pay check owed to him and everyone else has still yet to be paid.

“They’ve promised that they’re working on it, but it’s kind of hard to believe them,” Blakeley said on Friday. “37 days later, that’s all they’ve said.”

Monty Moshier, one of the owners of a local company, Makstride Prosthetics, said they did some work for RESA and are awaiting some remaining payment as well.

“We probably did about $16,000 worth of work for them and they still owe us about $5,000,” Moshier said.

Glen Hinshaw, Director and CEO of RESA Wearables, said he is well aware that staff and other bills have yet to be paid.

“We are doing everything in our power to resolve this matter as rapidly as we can,” he said. “I too have been affected by this and assure you we are using every means necessary to get past this.”

In the meantime, the company is doing what it can to still take online orders and service existing customers, Dahl said.