Collapse of China’s LVMH-backed Luxury Gym Chain Leaves Members Stranded and Staff Unpaid

Desperate members of China's failed gym chain, Will's Fitness, have turned to social media to track its collapse after its shutdown left many without refunds, and coaches operating illegally in borrowed spaces.[para. 1] Users on Xiaohongshu, self-dubbed "Will's refugees," are collaborating to create spreadsheets to log operational updates of the chain, marking which of the remaining 12 Shanghai locations have working facilities.[para. 2] Will's Fitness' downfall exposed the weakness in China's fitness industry, which is dependent on prepaid memberships. At its height, Will's operated over 100 locations nationwide with revenue exceeding 100 million yuan ($13.8 million). However, similar to competitor Tera Wellness, Will's relied heavily on multi-year memberships and expensive packages, leading to its financial instability.[para. 3]

In a bid to stabilize, Will's Fitness was acquired by L Catterton Asia—the private equity arm of LVMH luxury conglomerate—in 2018, in a deal valuing it at around 3 billion yuan. Nearly 200 million yuan was injected in rescue capital between 2023 and 2024.[para. 4] Despite this backing, the firm lacked experience in the fitness industry, and newly appointed operational experts from outside, including Tera Wellness’ executives, did not have a long tenure with the company.[para. 5] However, as of 2024, members’ complaints and legal actions led to Will's reducing its aggressive and misleading sales tactics. Some tactics falsely claimed membership appreciations and other associations with LVMH to appear credible.[para. 6]

As part of restructuring, the chain moved to online sign-ups and monthly payments but faced poor results.[para. 7] By early 2024, all non-Beijing and Shanghai locations closed, initially perceived as strategic closures. Still, stability was fleeting as minor cost-cutting measures like eliminating free tissues occurred, while the core market in Shanghai held steady until August.[para. 8] The decline accelerated dramatically in November when employees did not receive paychecks, an industry indicator of an impending collapse.[para. 9] Trainers then organized protests only to find abandoned offices and lost access to corporate communications.[para. 10] Operational lapses in December saw unpaid bills causing service outages, with staff being asked to waive pay under pressure.[para. 11]

According to social media reports, only 12 locations are operating but not in central districts like Huangpu and Hongkou. Suspicions mount over leadership changes in the parent company,[para. 12] Weikang Fitness Management Consulting (Shanghai) Co. Ltd., including board resignations in October, suggested risk isolation rather than a direct divestment strategy.[para. 13] Gym members continue gathering at open locations, mainly seeking refund strategies as refund requests now reach hundreds of millions of yuan.[para. 18] The operational challenges persist due to the tough financial situation and reluctancy among members to renew contracts or pay for classes.[para. 19] Most previously closed Will's Fitness locations have been re-leased to new operators, reflecting the continued value of their prime locations and facilities.[para. 23]