Elea throws Alexander clubs a lifeline

Alexander Health Clubs (亞力山大健康休閒俱樂部) yesterday said it had signed a letter of intent with Elea Cosmetics International Corp (誼麗國際) to resume operation of major outlets by next month.

The news comes a month after Alexander shut its 20 outlets nationwide. The latest development ended speculation about possible takeovers.

"We signed a letter of intent with Elea Cosmetics last night [Sunday night]," Alexander spokeswoman Wang Feng-ming (王鳳鳴) said in a telephone interview.

She declined to reveal terms or financial details, citing a non-disclosure clause.

Elea Cosmetics would only take over some major outlets and it planned to re-open those gyms by Lunar New Year, which falls next month, Wang said.

Elea Cosmetics was unavailable for comment as of press time yesterday.

Wang declined to comment on whether local direct sales firm Kelti International Co (克緹國際) was also involved in the takeover of its Taiwanese branches. Kelti has bought a controlling stake in Alexander's Chinese operation for US$7 million.

Alexander Group (亞力山大集團) chairwoman Candy Tang (唐雅君) was released on bail after questioning last month on suspicion that she and her sister had defrauded members of the health center.

The health club had 10,000 members and 2,000 employees.