DES MOINES, Iowa -- An out of state company is backing out of a run scheduled in Des Moines next month.
A 5K Foam Run was scheduled for September 20th at Sleepy Hollow Sports Park. It cost participants around $70 with the registration fee and t-shirt.
However, as quickly as the company, Round House Races, collected the registration fees a message was posted on its website saying it's facing bankruptcy and no refunds would be issued.
Laura Chavez with the Iowa Better Business Bureau says the company is listed on the BBB website as an F rating with several negative comments.
She says more and more pop up fun run organizations are doing the same thing.
“We all stay pretty connected throughout the entire BBB system and we've been receiving tons of information from BBB’s across the country where these fun run races are getting abruptly canceled,” says Chavez.
Chavez recommends doing research on the company and avoiding any payments with cash, check or debit cards.
“We also recommend that consumers pay with a major credit card so that way if it gets canceled abruptly then they can dispute that charge with their credit card company and their credit card company can reverse that charge,” says Chavez.
People in the running community are also noticing the negative trend.
“Lately over the past three years for sure, we've had businesses that are trying to put on races and operating as a business to make money,” says Fitness Sports Owner Steve Bobenhouse.
Bobenhouse recommends avoiding races organized by out of state organizations and choosing to support local.
“We have a website that contains about a thousand races around Iowa in the course of a year, I and I try to mark the ones that I know are local,” says Bobenhouse.
Round House Racing posted on its website Red Frog Events is offering free registration to any on who signed up for the foam run for its events in 2014 and 2015.
However none are currently scheduled this year in Iowa.
In July, Channel 13 did a story about the Hard Charge Obstacle course race scheduled in Des Moines.
It filed for bankruptcy, canceling the event and leaving all the participants out their registration fees.