Sellers say they're out thousands after abrupt closing of Ridgel - - Jackson, MS

Sellers say they're out thousands after abrupt closing of Ridgeland business

RIDGELAND, MS (Mississippi News Now) -

The owner of a Ridgeland business finds herself under fire after closing her business days ago without warning. Many who brought their items for sale at the Kids Kloset consignment shop said they've now lost thousands of dollars as a result.

"I've had tons and tons of people messaging me and commenting that they're in shock, they can't believe this. They were just in there, this lady owes them money," said one seller.

The woman said now she can't get what she was trying to sell, and she's out hundreds of dollars.

The owner, Melanie Sharp Yates, closed the business abruptly days ago.

A 3 On Your Side investigation reveals the business had actually been dissolved months earlier for failing to comply with state law.

Records show The Kloset LLC registered to a Melanie S. Yates, according to the Mississippi Secretary of State's Office.

Spokesperson Pamela Weaver said the Secretary of State dissolved the business in December 2014 because Yates failed to submit an annual report that year.

"If your business dissolved six months ago and you're still taking people's items as of last month, I mean, she knew that eventually that her doors were gonna be closed and she never let the public know," said the seller, who asked not to be identified by name.

Yates could have even had financial issues.

We found more than twenty different cases with the Mississippi Department of Revenue indicating tax liens filed against a Melanie Yates for varying amounts, some over $41,000.

Now, those sellers can't find her.

Our attempts to reach her at the numbers on her business door and her Yazoo City home were also unsuccessful, with a recording confirming that each number had been disconnected.

"People need to know who she is and never do business with her ever again," the woman said.

The woman said she believes Yates' actions were criminal, but local law enforcement told her otherwise.

She said Ridgeland police told her the situation is a civil matter and her only option would be to sue.

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