Major fitness chain in Vietnam seeks 30 days for restructuring amid service disruptions

However, the company’s outstanding financial obligations, the resources available for restructuring or which clubs are expected to remain open were not specified in the video.

Fort acknowledged that California Fitness & Yoga had pursued a growth-at-all-costs strategy, expanding beyond its operational capacity.

As competition intensified, economic conditions fluctuated, and customer demands changed, weaknesses in the company’s operations became increasingly apparent. 

However, Fort said market difficulties could not excuse the company’s mistakes.

Inappropriate decisions and delays in addressing outstanding problems resulted in some member benefits being reduced or interrupted, several clubs temporarily closing, class schedules being disrupted, and the overall workout experience falling short of expectations.

“We understand that these impacts are real and they cannot be undone by just an apology alone,” Fort said.

He also acknowledged that the problems had affected employees’ work and family lives, caused difficulties and losses for partners and suppliers, and damaged trust built over many years.

The CEO added the company was mobilizing available resources and working with relevant parties to address its commitments and protect the interests of members, employees, and business partners.

Addressing reports that the entire chain might be dissolved, Fort said the merger of several legal entities, completed in 2019, was part of an earlier legal restructuring process and did not mean California Fitness & Yoga was shutting down.

He said the chain remained operational and was making adjustments to stabilize its operations, with its review process underway for about 90 days.

Progress updates will be shared after 30 days, including unresolved issues and next steps, he continued.

Alongside its restructuring plan, the chain operator announced several changes intended to improve the member experience.

The company decided to eliminate surcharges for certain GroupX and yoga classes following customer feedback, restoring them to the standard membership policy.

The chain will also continue adjusting class schedules to increase the number of sessions available for booking and better meet members’ fitness needs.

It also pledged to prioritize maintaining and gradually restoring essential amenities, including workout towels, drinking water, and parking assistance. However, implementation will depend on conditions at individual clubs.

Fort said the company plans to offer additional month-to-month membership options to give customers greater flexibility.

Customers will receive transparent information about the terms and conditions when signing up for new memberships or renewing their contracts.

These changes are among the measures California plans to introduce to address operational shortcomings and improve customer experiences.

However, Fort did not specify when the new membership options would be introduced, how much they would cost, or what conditions would apply.

California Fitness & Yoga has operated in Vietnam since 2007, offering gym facilities, yoga and group exercise classes known as GroupX.

At its peak, the chain had around 35 clubs across several provinces and cities.

Findings by Tuoi Tre (Youth) online newspaper indicate that several clubs in Ho Chi Minh City have announced temporary suspensions through October 31, including those at Hung Vuong Plaza, SC VivoCity, Parkson Flemington, Pico Plaza, and GoldView.

Other temporarily suspended locations include Mac Plaza and Sky City in Hanoi, as well as branches in Da Nang City, central Vietnam and Dong Nai City, located in the southern region.

The Centuryon Saigon Centre club has announced an extended suspension through April 17, 2027.

Sixteen sites remain operational, including seven in Hanoi, eight in Ho Chi Minh City, and one in Khanh Hoa Province, south-central Vietnam.

California has also suspended towel services, VIP drinking water, and the Centuryon counter through November 8.

Members whose benefits have been directly affected are eligible to freeze their memberships free of charge for up to 30 days.