Fitness app developer files for bankruptcy

By Quynh Trang   May 11, 2020 | 07:28 pm GMT+7
Fitness app developer files for bankruptcy
WeFit app seen on a tablet. Photo courtesy of Onaclover Jsc.

Onaclover Jsc, the owner and developer of fitness app WeFit, has filed for bankruptcy due to financial difficulties linked to the coronavirus pandemic.

The Hanoi-based startup announced its bankruptcy and termination of services in a Monday email to customers. The mobile app’s official name is WeWow, but is still commonly referred to as WeFit, the original name.

The company said it had exhausted its operating capital due to a financial crunch earlier this year and the subsequent Covid-19 pandemic.

It filed for bankruptcy on April 29 and informed its creditors and shareholders to contact the Hanoi People’s Court for legal matters regarding their rights and benefits.

Some gym owners said they have not received payment from the company of up to hundreds of millions of dong (VND100 million = $4,300).

Customers, for their part, said they were confused and did not know if they could still continue access gym sessions that they had paid for. Pham Thi Van Anh, a customer, was surprised to learn that the company is shutting down because she still has 15 unused sessions worth VND1.5 million ($64).

Onaclover has not announced specific plans to deal with these issues. It said more information on measures to ensure the best solution for customers’ benefits will be released later.

WeFit, an app that connects users with fitness centers and beauty salons in Hanoi and Ho Chi Minh City, was created in 2016 by founder and CEO Nguyen Khoi, who in 2018 became a Forbes 30 Under 30 honoree.

Last year, WeFit announced that it had received $1 million from CyberAgent Capital and other investors.

Since the end of last year, gym and spa owners have been reporting unpaid dues from the company and earlier this year, CEO Nguyen Khoi was replaced by deputy CEO Nguyen Hai Dang. Some said that the moved aimed to reform the business.  

 
 
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