California Fitness crisis deepens in Vietnam as nationwide network down to just one gym

Cali Binh Duong Square, located in the former namesake province that is now part of Ho Chi Minh City, is currently the chain's only operational location in Vietnam, following the temporary closure of its club at AEON Mall Binh Tan on Tuesday.

Another club temporarily closes, two set to reopen

The company had announced on Monday evening that its AEON MALL Binh Tan club in An Lac Ward, Ho Chi Minh City would temporarily suspend operations from Tuesday until further notice as part of operational adjustments.

The company advised members directly affected by the closure to scan a QR code to apply for a free membership freeze, with the duration to be assessed on a case-by-case basis. However, the announcement did not specify when the club would reopen or outline alternative arrangements for affected members.

According to Tuoi Tre (Youth) online newspaper, following the Binh Tan club's suspension, Cali Binh Duong Square was the only facility in the chain still operating.

California Fitness has said two clubs, Lapen Center in Vung Tau and Pegasus Plaza in Bien Hoa, are expected to reopen on November 5. The chain's other locations will remain temporarily closed, with no reopening dates announced.

T.N., a member of the Binh Tan club, said she had been a California Fitness customer for about five years. 

She initially purchased an 18 million dong (US$680) membership package, later paid nearly 15 million dong ($570) more, and, several months ago, spent more than 10 million dong ($380) to upgrade to a lifetime membership following a staff recommendation.

After receiving notice of the temporary closure, she was advised to freeze her membership. However, she said she was disappointed at having to interrupt the yoga classes she had attended for years.

"California's yoga instructors are highly skilled, dedicated, sociable and friendly. Now that the club has closed, everyone feels a sense of loss. We have looked for other yoga studios, but none seems to compare with California," T.N. said.

She added that some instructors were considering renting a separate venue to continue teaching. 

She was also considering joining them while waiting for California Fitness to resume operations, saying she would be willing to pay additional fees to continue learning from familiar instructors.

Members seek contractual benefits after paying thousands of dollars for memberships

On October 31, California Fitness & Yoga surveyed members on a proposal to charge existing customers an additional VND599,000 (US$23) per month as part of efforts to consider resuming operations at some clubs. 

The proposal drew criticism from customers who had already paid upfront for long-term membership packages.

T.T., a member of the club, said he had spent around VND200 million ($7,600) on a premium lifetime membership, in addition to paying VND23 million ($875) annually to maintain its privileges. However, he said several membership benefits had been gradually discontinued since September.

"Since September, the club has gradually cut various services, starting with smoothies, bottled water and workout towels. Now, all I can do is use the gym, without any of the benefits I previously enjoyed," he said.

The temporary suspension of several clubs in Ho Chi Minh City has also made it difficult for him to use his membership. He said that continuing to work out at another club in the chain could require him to travel more than 50 kilometers to Binh Duong.

T.T. called on California Fitness to restore the full range of membership benefits at some of its clubs in Ho Chi Minh City or offer refunds, rather than asking customers to pay additional fees.

Similarly, N.T.H. said her family spent more than VND300 million (US$11,400) on two lifetime memberships in 2011, which gave them nationwide access to clubs. 

Following the temporary closures, the family not only lost access to their gyms but also faced difficulties retrieving clothes and workout shoes from two personal lockers at a club.

"My family has two lifetime memberships, but now California has closed its clubs without prior notice, and we have no idea when they will reopen. Our two personal lockers are still at the gym, and we have not been able to retrieve our clothes and workout shoes. I am extremely frustrated," H. said.

She opposed the proposed monthly surcharge, saying her family still held valid membership contracts and expected the company to resume operations so they could continue using its services.

California has so far advised members affected by the Binh Tan closure to freeze their memberships. 

However, it has yet to announce specific arrangements for alternative workout locations, outstanding membership benefits or the retrieval of personal belongings from temporarily closed clubs.