Alexander Group plans to sell outlets

The troubled Alexander Group (亞力山大集團) announced last night it was in talks with two businessmen over the sale of its major outlets in Taipei and was negotiating with landlords and club members about its fitness centers outside of the capital.

The nation's biggest health club chain, led by Candy Tang (唐雅君), is expected to sign letters of intent with the two businessmen next week, Ivan Liu (劉立恩), Tang's attorney at Yung Fa Law Offices (永發聯合法律事務所), told the media.

He didn't disclose the identities of the two businessmen, saying only they have not previously operated in the health and fitness sector.

The group -- which unexpectedly shut down all its branches on Monday after claiming its board had been defrauded of NT$95 million (US$2.94 million) -- said in a statement distributed earlier yesterday that "it is difficult for one business to absorb Alexander's [17] branches."

The group is hoping to unload its business in two portions -- Taipei branches and those outside of Taipei -- to best protect the interests of its members, employees and suppliers, the statement said.

Tang, who was released by prosecutors on Wednesday on NT$2 million bail, will withdraw herself from the day-to-day operations in the health club and will only serve as a consultant, Liu said.

Liu also said members who signed up with Alexander after Aug. 15 this year were entitled to terminate their contracts with the health chain. The group will reimburse payments based on the remaining length of the contract, he said.

The health club had a total of 70,000 members as of yesterday.

The Bankers' Association (銀行公會) is expected to discuss with banks today how to deal with pre-payments by consumers.

The group has been facing shortfalls of as much as NT$20 million each month in the second half of this year, Liu said.

He said that in order to finance her ailing business, Tang began liquidating her assets in May this year to raise NT$200 million in fresh funds, but was unable to turn her business around.