Fitness app files for bankruptcy

Tuesday, May 12, 2020 05:12

WeFit was founded in 2016 and its name was changed to WeWow last year. — VNS Photo

A fitness telephone app launched to connect users to gyms has filed for bankruptcy.

WeWow, which was originally called WeFit, was founded in 2016 as part of the Onaclover Technology Joint Stock Company.

Services halted as of 8am on May 11 and an application to begin bankruptcy proceedings was submitted to the People's Court of Ha Noi.

Two years ago, WeFit founder Nguyen Khoi was named in the "30 Under 30" list by Forbes.

But in a letter to customers, the company said: “We regretted to announce that although we had made great efforts to restructure after the crisis at the beginning of this year, our capital had been fully depleted due to unforeseen business and financial difficulties worsened by the COVID-19 pandemic situation.”

At the end of last year, problems emerged for the company with many gyms and spas claiming they were owed money.

Nguyen Kim Chi, a customer still had a balance with the company of around VND3 million (US$128), said the news came as a complete surprise to her.

She said she was worried she may lose her cash, and if the services she had paid for would be honoured.

A yoga teacher at a yoga club in Quan Su Street, Ha Noi, shared that WeFit had been slow making monthly payments since the end of 2019, and the club was still owed money for the first four months of 2020.

The instructor shared to social media: “Our club has not been paid as committed, affecting our revenue and financial balance.”

A spokesperson for WeWow said: “We will have an official announcement soon for all our current customers and rest assured we are working hard on your behalf to secure a positive resolution,” the company said. — VNS

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