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Alexander Group closes down all its health centers

A sign saying ``Closed for Maintenance'' stands outside Alexander Health Club's World Trade Center branch in Taipei yesterday. PHOTO: CHU PEI-HSIUNG, TAIPEI TIMES

Battered by financial difficulties, the Alexander Group (亞力山大集團), parent company of the nation's leading fitness centers, Alexander Health Clubs, (亞力山大健康休閒俱樂部), yesterday shut down all of its 20 branches without prior notice to members.

"I regretfully announce that all branches have suspended operations," company chairwoman Candy Tang (唐雅君) told a press conference yesterday.

Tang said that the company had experienced plummeting sales over the past two-and-a-half years caused by a "poorly performing economy, the fallout of credit and cash-card defaults and rising inflation."

In spite of an estimated NT$2 billion in annual revenues, Tang yesterday claimed that the company's board was recently scammed for NT$95 million, which triggered a liquidity problem to her already financially troubled gyms.

She did not say whether the company would reimburse some 10,000 members as well as the company's 1,000 or so employees.

Disappointed gym members yesterday besieged the company's outlets, with some accusing the Alexander Group of fraud.

"Knowing that it may soon suspend operations, Alexander were still touting for new members."

Ms Lin, a disgruntled Alexander Club member

A woman surnamed Lin, interviewed on TV yesterday, said that she had signed a contract with Alexander on Sunday.

"Knowing that it may soon suspend operations, Alexander were still touting for new members," Lin said.

Chen Po-ching (陳柏菁), the Taipei City consumer protection ombudsman, yesterday urged consumers to seek help from the Consumers' Foundation by filing a joint lawsuit against Alexander.

She also lambasted the company for having only notified its employees of their fate by brief messages after reaching a decision to suspend operations at around 2am yesterday morning.

A joint lawsuit can only be brought by a group of more than 20 consumers before applying for a juncture to freeze company assets, Chen said, who also urged members to contact their banks as soon as possible to discontinue monthly payments.

Wu Cheng-hsue (吳政學), director-general of the Consumer Protection Commission, said he had had problems reaching company executives yesterday, including Tang, who was once named one of the best female businesswomen in Asia.

At the age of 22, Tang opened her first dance club expanding her business and founding the Alexander Group in 1993.

However, the group has been suffering from financial difficulties after tapping into Chinese markets by establishing a Shanghai-based flagship fitness center in 2002 with capital of NT$50 million and three other Chinese branches.

Domestic banks including First Bank (第一銀行) and Chinatrust Commercial Bank (中信銀) yesterday promised to come to the aid of paid-up members.

Pending contract terms, Chinatrust will assist the bank's credit cardholder members of Alexander to seek legal compensation should the firm's closure be permanent, the bank said in a statement yesterday.

The bank will also stop cardholders' monthly payments to Alexander.

Taipei prosecutors yesterday said that Alexander may face fraud charges, without ruling out the possibility of preventing Tang from leaving the country.

The Council of Labor Affairs yesterday vowed to press Alexander for follow-up compensation for its employees, including salaries for this month and redundancy payments.
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