California Wow: Customers, Staff To Sue Failing Fitness Centre

[Straight8]

For some it definitely was a good deal. For those who had had it less than 6 months, unfortunately not so.

I used mine 3 - 4 times a week for over 4 years.

I remember when the membership was offered, I had to ask several times about the 100 baht per year renewal. 100 baht a year, not per month, I asked.

It just didn't make sense. Even at 100 baht a month I still found it a great deal. But I always wondered how they made money out of these deals.

Now we know the answers.

Worked out well for True Fitness, Fitness First and the local gyms.

[tinfoilhat]

Did anyone actually think “lifetime” meant until the end of your life?

More realistically it means their lifetime, not yours, and they can close their doors or file for bankruptcy at any time. Lifetime memberships in health clubs are notoriously bad investments.

talking to yourself?

[robblok]

A year ago I was shopping around for a gym and search TV for topics and even open a topic.

My search pulled many postings that WOW was about to close and not really functioning anymore.

Other people really adviced WOW to me.

I ended up signing up for a year membership (4999 Baht) at Castra gym.

Good, clean and no real bodybuilders, so good for fatties/ex-fatties like me to do their workout.

http://www.thecastra.com/index.html

Just curious what is the problem with bodybuilders ? Do they bite ? Smell funny ? Look dangerous ? Back when i was starting out i liked it when there were bodybuilders around at least you knew the gym had good equipment then plus some were actually quite nice with good information to share.

[SPIKECM]

How it's possible to go bankrupt with the prices they charged is beyond me. The whole setup looks like it was a giant scam from day one.

All multi-location fitness centers like Cal WOW are scams. Some are just better managed than others. They all rely on overselling, and people's tendencies to get all motivated about fitness, and then fade away back to eating chocolate bars in a month (week?) or two, albeit with a long-term contract to pay, or a big one-time membershipfee gone. Hence the high-pressure to 'Sign today'. They know if you have a chance to cool off, you won't pay the price.

For them to stay in business, they need to carefully balance new sucker customer acquisition against overhead and upkeep, which is why the places are so often in disrepair...

Find a good locally owned community gym, pay monthly, and do your best to stay motivated. Better (and WAY cheaper) in the long run.

Not cheaper, depending on when you join.

I bought a lifetime membership in 2007 for 9,000 baht. Each year since then, I paid 100 baht for my renewal fee. I don't know of any local gym where I could have paid what turned out to be 1,900 baht per year.

Sure it was unsustainable, as we see now. But I used the gym three times a week for over 5 years, so I got my money's worth.

I am searching for a new gym now, and the prices are quite a bit higher.

I did the same but where I got scammed was on the PFT (trainers) ...every time I went there was some new guy giving me a hard luck story that the last guy left and he wouldn't see any money if I didn't sign up with him. I got so fed up listening to this whinging instead of being trained. I haven't been back for about two years. I paid the 99 baht per year for 10 years when I joined as it would lapse if you forgot to pay one year. Stupidly cheap. That also got me into Paragon and others branches. Unbelievable value if you didn't employ a PFT. Impossible as a business model.

Edited August 22, 2012 by SPIKECM

[Arkady]

I applaud the consumer protection trying to do something but not sure what they can do if there is no cash. The bilked customers obviously have the lowest claim after the Revenue Dept, the banks and the unpaid employees. In Western countries unpaid employees have the highest claim but unfortunately not in Thailand. I think they should step up and get civil and criminal prosecutions going against the directors of CAWOW. No doubt Levine has already transferred most of his ill gotten gains offshore but I am sure they still have some assets in Thailand that could be handed over to the Legal Execution Department for public auction.

What is a mystery to me is why Major Cineplex bought into this obvious Ponzi scheme but they did see the writing on the wall eventually and dumped their stake in time.

Edited August 22, 2012 by Arkady

[charmonman]

They should be sued for all the racket they created at their fatness centres. Wow! Good thing if they close the lot.

I agree wholeheartedly. I cursed them every time I had to walk by due to the horrible, loud, repetitive, and moronic dance music they blasted not only inside their club but outside as well.

[Straight8]

A year ago I was shopping around for a gym and search TV for topics and even open a topic.

My search pulled many postings that WOW was about to close and not really functioning anymore.

Other people really adviced WOW to me.

I ended up signing up for a year membership (4999 Baht) at Castra gym.

Good, clean and no real bodybuilders, so good for fatties/ex-fatties like me to do their workout.

http://www.thecastra.com/index.html

[lazygourmet]

How it's possible to go bankrupt with the prices they charged is beyond me. The whole setup looks like it was a giant scam from day one.

All multi-location fitness centers like Cal WOW are scams. Some are just better managed than others. They all rely on overselling, and people's tendencies to get all motivated about fitness, and then fade away back to eating chocolate bars in a month (week?) or two, albeit with a long-term contract to pay, or a big one-time membershipfee gone. Hence the high-pressure to 'Sign today'. They know if you have a chance to cool off, you won't pay the price.

For them to stay in business, they need to carefully balance new sucker customer acquisition against overhead and upkeep, which is why the places are so often in disrepair...

Find a good locally owned community gym, pay monthly, and do your best to stay motivated. Better (and WAY cheaper) in the long run.

The septic tank that manages/d them, went bust in either HK or Sth Korea or somewhere else.

Just another greedy american. Hope everybody takes him to the cleaners.

The world can do without these greedy people ruining good peoples lives.

Karma. Som nom nar.............

Canadian... he is

[toenail]

I feel sorry for the employees of CA Wow (the cleaners, the trainers, the sales clerk...) because they took their job seriously not knowing that the place would suddenly close just like CA Wow's customers. True, it is a no brainer that you cannot keep selling cheap memberships to a fitness center to keep it afloat. Eventually you reach a saturation point.

______________

In Pattaya, a decent gym could be successful. Many of us belonged to CA Wow and now we have nothing decent to go to (unless we pay 25,000-31,000 baht for a 5 star hotel gym). Fitness First should take over CA Wow and run it like a "real club". Yes, people (except the Cheap Charlies) realze the annual membership will be more, but it is worth it.

[Thai at Heart]

Golf clubs in Asia have been doing this for many years, until of course, the course folds, gets bought by someone, and the new owners "re-write" the terms of the membership.

Of course, they have a better model, because members still have to pay green fees, but I had a friend who's life time membership was severely re-written and his green fees bumped up very nicely.

[villagefarang]

Did anyone actually think “lifetime” meant until the end of your life?

More realistically it means their lifetime, not yours, and they can close their doors or file for bankruptcy at any time. Lifetime memberships in health clubs are notoriously bad investments.

talking to yourself?

Just continuing a thought.

[wlcart]

Cal Wow is a spin off of 24 hour fitness in the USA. 24 hour fitness has been selling lifetime memberships since the 80s and is still in business.

The lifetime membership model can work, but WOW's management just sucked balls.

[JulesMad]

Money Back?!? Good idea....

Money back in Thailand?!? Good Luck! Never gonna happen

[villagefarang]

I was a lifetime member of the Regent Hotel health club twenty-five years ago. That lasted until the hotel changed hands about six years later, after which, whistle for it.

In Western countries you have some recourse in law. Try it in Thailand and see how far you get.

Interesting, I was at the Regent pretty much from the time it opened until the Erawan was rebuilt next door and turned into a Hyatt. Gave up the Regent membership and moved to the Hyatt until they did their most recent remodel. Those health clubs are about the only things I really miss about Bangkok but I do have amazing mountain bike trails where I live now. Edited August 22, 2012 by villagefarang

[firestar]

Didn't the Farang owner of California WOW with the celebrity wife sell his Phuket villa for 24 million USD a couple years ago?

Settling the whole debt with the bank should be a snip...

[how241]

Money Back?!? Good idea....

Money back in Thailand?!? Good Luck! Never gonna happen

Good luck to all of use who lost thier membership.

[zakk9]

Apparently, Mr. Levine enjoys a modest, almost frugal, lifestyle:

http://www.designsig...ic-levine-home/

http://www.nytimes.c...h-thailand.html

http://www.nytimes.c...uket_index.html

Oh... and he's still a Canadian.

Edited August 22, 2012 by zakk9

[Chalard]

How it's possible to go bankrupt with the prices they charged is beyond me. The whole setup looks like it was a giant scam from day one.

All multi-location fitness centers like Cal WOW are scams. Some are just better managed than others. They all rely on overselling, and people's tendencies to get all motivated about fitness, and then fade away back to eating chocolate bars in a month (week?) or two, albeit with a long-term contract to pay, or a big one-time membershipfee gone. Hence the high-pressure to 'Sign today'. They know if you have a chance to cool off, you won't pay the price.

For them to stay in business, they need to carefully balance new sucker customer acquisition against overhead and upkeep, which is why the places are so often in disrepair...

Find a good locally owned community gym, pay monthly, and do your best to stay motivated. Better (and WAY cheaper) in the long run.

The septic tank that manages/d them, went bust in either HK or Sth Korea or somewhere else.

Just another greedy american. Hope everybody takes him to the cleaners.

The world can do without these greedy people ruining good peoples lives.

Karma. Som nom nar.............

Canadian... he is

Apologies. Pretty close really!!! lol............

[Chalard]

Apparently, Mr. Levine enjoys a modest, almost frugal, lifestyle:

http://www.designsig...ic-levine-home/

http://www.nytimes.c...h-thailand.html

http://www.nytimes.c...uket_index.html

Oh... and he's still a Canadian.

Well you can see where everybody's membership money went!!!!! lol...................

[brianP]

Maybe the former staff and trainers etc. can win some lawsuit money and open a real fitness center. They have a customer base and locations/equipment. All ready to go. You know they could run it fair and just and make a living to boot. Another idea would be to provide sexy workout outfits for the attractive young folks and with 2 way mirror, rent the adjoined building to the perverts for cash to oogle and amuse themselves,thus free workouts and everybody's happy.

[Kangaroo29]

Greedy staff with their own financial agenda wouldn't have helped this business turn into a cess pool either, the staff just can't be trusted with all kinds of various prices for additional things with their commissions tacked on hoping you will fall for their price, they just can't help themselves especially those bitchy lady boys they unwisely hired should be enough to raise the alarm with any fool.

[ronthai]

Apparently, Mr. Levine enjoys a modest, almost frugal, lifestyle:

http://www.designsig...ic-levine-home/

http://www.nytimes.c...h-thailand.html

http://www.nytimes.c...uket_index.html

Oh... and he's still a Canadian.

Got to admit, the man has good taste. I am just a bit short (only $24M) to buy it

[vicram]

1.000 employees in eight branches???¡¡¡¡¡ WOW¡¡¡¡¡

[Globeman]

i wonder how many of the "end of days" memberships went directly into staff pockets?

given that the Bank is into them for 80 odd million, the staff and customers are going to have quite a wait ahead of them.

On another note, i cannot understand why, for the life of me, anyone would want to work out at Paragon. It seems neither convenient nor appealing to me in any way.

According to Thai law, employees receive any remaining money before creditors do.

[belg]

1000 employees in 8 branches? 125 staff????? are they there to fill the fitness and make it attractive to customers? I cannot imagine so many people

local gym here is 10.000 baht per year in the moo bahn, fitness + sauna + swimming pool + yoga + cardio ....

fitness businesses always count on the many people quitting after just a few sessions, the monthly or yearly payments are in the pocket anyway

[Steele404]

Almost bought a lifetime membership in 2006, after being harassed by a salesperson 12am in the evening.

He was ready to drive his car with a credit card form to my house. I said up yours, I hope you business

tactics/ethics/model will fail and come to a complete disaster.

[TallGuyJohninBKK]

Arthit Isamo, director-general of the labour protection department, said his department had summoned executives of California WOW to testify twice - but no executives turned up so the department would consider the case based on information from the workers only.

Quite the upstanding corporate citizens...I see!

[kimamey]

There's lifetime and there's lifetime. My impression is that even with "lifetime" membership, there were fees to be paid, and when I checked prices a few years ago, I found them totally unacceptable compared to the competition.

I'd never heard of this place and don't know the fees but going from what I've read here I would assume the idea of lifetime membership is based on the the length of time someone will use the facilities. I suspect that many people start with good intentions but then give up. I read somewhere that on average people give up going to the gym after 6 months. I'm not sure if that's true but I wouldn't be surprised. Of course if you have to pay fees on top then you are encouraged to keep paying so as not to waste your membership. Without that then you are likely to have a good excuse to stop when money is a little tighter.

[Farangdam]

sueing going to bangkrupt company, u must be hurry. i remember when it was newly open to much promotion in place like pattaya. expensive one too.. now full of shait ..using superstar like jackie chan etc...

[Farangdam]

pity to the customer but not to the employee they are greedy as their company tack in allot of commision from the sales attimes which very irritating. good for them of 1000 employee from 8 branch...