Class action lawsuit is in the offing over Alexander

The Consumers' Foundation (消基會) is planning to file a class-action lawsuit against the debt-ridden Alexander Group (亞力山大集團) by next week at the latest, an executive at the foundation said yesterday.

"We want to help consumers request reimbursements from Alexander based on its remaining assets," foundation chairman Cheng Jen-hung (程仁宏) told the Taipei Times by telephone.

The foundation said that it would also continue with a petition that it filed last Thursday to have the Taipei District Court declare Alexander bankrupt, Cheng said.

The foundation's decision to file a class-action lawsuit came after a new buyer of the ailing fitness chain said on Tuesday that it would not be responsible for carrying Alexander's debt burden.

Taipei-based Eleeza International Inc (宜麗國際), a distributor of foreign cosmetics brands such as Borghese of Italy, said it would charge Alexander members if they want to join the new fitness chain.

"If the court declares Alexander bankrupt, the Alexander Group's assets will be frozen and then be distributed to their members afterwards," Cheng said.

Eleeza president Liang Mu-chun (梁木春) announced on Tuesday that the company had signed a preliminary agreement with Alexander under its newly established company, which has no connection with Alexander except for the purchase of their existing equipment and outlets.

The new company may provide special offers to lure Alexander's old members, said Liang, without giving further details.

"The special offer that the new company provides has to be attractive enough to lure a certain amount of Alexander members that they are targeting to use their services, for they are still the company's main target group," foundation vice chairman Hsieh Tien-jen (謝天仁) said yesterday.

"It will be challenging for the new company to attract members from other major health club chains," he said.

Cheng said the foundation may also file a class-action lawsuit against credit-card companies servicing Alexander's client base.

"This is to help consumers who have paid for their membership in advance, but who have not been able to use it or ask for refunds," Cheng said.

"As long as Alexander does not reopen again using the Alexander brand name, consumers who paid their credit card bills in installments are still entitled to [not pay] their bills," said Chuang Huei-yuan (莊惠媛), an official at the Consumer Protection Commission (消保會), in a telephone interview yesterday.