Feature | Will's Fitness on the Brink: Why a Well-Known Fund Tossed It Aside (AI Translation)
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文｜财新 任蕙兰
By Ren Huilan, Caixin
【财新网】从2024年12月起，社交媒体小红书成了一个特殊群体“威尔仕难民”相互分享信息的主要渠道。他们是全国连锁健身品牌威尔仕健身的会员，很多人办了超长年限的健身卡，或者买了大笔金额的私教课。威尔仕健身于去年11月开始突然大面积关店，让这些健身会员神经紧绷，或是退费无门，或是辗转于仍在营业的少数门店。
[Caixin Network] Starting from December 2024, the social media platform Xiaohongshu has become a major channel for a special group known as the "Will's Refugees" to share information. These individuals are members of the national gym chain Will's Fitness, many of whom hold long-term membership cards or have purchased significant amounts of personal training sessions. In November of last year, Will's Fitness unexpectedly began closing a large number of its locations, leaving these gym members anxious—either unable to obtain refunds or having to shuttle between the few remaining operational branches.
一些小红书账号的消息甚至比处境茫然的威尔仕员工更加灵通。这些账号持续更新有关威尔仕的最新消息，制作和维护相关信息表格，包括还有哪些门店正常开门，哪些已经关闭，哪些疑似即将关闭，还能锻炼的门店是否有保洁人员打扫卫生，是否可以约第三方提供的团课等等。
Some Xiaohongshu accounts appear to be even more informed than the bewildered employees of Will's. These accounts continuously update the latest information concerning Will's, creating and maintaining related spreadsheets. The records include information on which stores remain open, which have already closed, and which are suspected to be closing soon. They also track whether operational stores have cleaning staff, and if third-party group classes can still be scheduled.
上述小红书笔记的评论中，更多“威尔仕难民”分享自己的遭遇。有人在威尔仕健身大面积闭店之前，就因漫长波折的退费而苦恼。一位网友的分享称，自己的退费官司虽然打赢了，但对方未出庭，退费遥遥无期；自己已经放下这件事情，不想再继续因此而深夜刷小红书，影响到正常的工作生活。有的人则一边自嘲，一边约“难友”去硕果仅存的门店“最后一练”。
In the comments of the Xiaohongshu post, more "Will's fitness refugees" shared their experiences. Some were troubled by the lengthy and complicated refund process even before the widespread closure of Will's Fitness outlets. One netizen shared that although they won their refund lawsuit, the opposing party did not appear in court, making the refund seem a distant possibility. They have since let go of the matter, unwilling to let late-night scrolling on Xiaohongshu affect their regular work and life. Others, meanwhile, half-jokingly arranged to meet fellow "refugees" for one last workout session at the remaining open gyms.
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- Xiaohongshu became a crucial platform for "Will’s Refugees" to share information after Will's Fitness began closing numerous locations in 2024, creating uncertainty among members with prepaid memberships.
- Despite efforts to restructure and additional investments from LVMH's fund, L Catterton, Will's Fitness faced financial difficulties, leading to unpaid wages and widespread closures of its gyms by early 2025.
- By early 2025, only 12 Will's Fitness locations remained operational in Shanghai, with refund requests from members reportedly reaching the billion-yuan level, reflecting the brand's significant decline.
[para. 1][para. 2] Starting from December 2024, the social media platform Xiaohongshu became a major channel for individuals known as "Will's Refugees" to share information regarding the collapse of Will's Fitness, a national gym chain. These individuals, many of whom hold long-term memberships or have purchased significant personal training sessions, were left anxious as the gym chain started closing many of its outlets without offering refunds or clear communication to members. Xiaohongshu accounts have been pivotal in providing timely updates and maintaining spreadsheets to track which gym locations remain open or are closing, often being more reliable than the company's internal communications.
[para. 2][para. 3] The sudden closures and lack of communication have left many members frustrated, with some describing lengthy refund processes and legal battles as daunting and unresolved. Despite winning a lawsuit, one member was unable to secure a refund due to the company's absence from court proceedings. Community members on Xiaohongshu even jest about arranging 'last workout' meetings to make the best of the few operational branches.
[para. 4][para. 5] Will's Fitness is the second significant fitness franchise in Shanghai to collapse in two years, following Hosa Fitness. Despite being backed by a notable fund under LVMH, Will’s Fitness failed, primarily due to the pitfalls of an expansion strategy reliant on prepaid models. Once revenue generation and shareholder support waned, the chain quickly unraveled. The collapse placed a spotlight on the vulnerabilities faced by gyms operating under prepaid membership models, particularly in the wake of the COVID-19 pandemic.
[para. 6][para. 7][para. 9] At the peak of its operations, Will's Fitness managed over 100 outlets with an annual revenue exceeding 100 million yuan. It mirrored the high-leverage prepaid card reliance seen in One Wellness, which it acquired after the latter's financial troubles. However, revenue declines highlighted the adverse effects of such leverage. L Catterton fund, under LVMH, once valued Will's at 3 billion RMB and attempted to revitalize it post-pandemic with a large investment, but operational challenges persisted.
[para. 8][para. 11] By mid-2024, the issues with closing stores became public as problems such as unpaid wages began to surface. By November, swift closures ensued, compounded by delayed salaries, particularly for personal trainers. Such salary delays are seen as harbingers of financial trouble in the fitness industry, and by December, Will’s Fitness ceased payments to even its cleaning staff, leaving open gyms unsanitary and resembling “refugee camps.”
[para. 13][para. 14] Management publicly acknowledged operational difficulties, but emphasized closures as strategic adjustments to better serve consumers. However, by early 2025, store closures cascaded, with employees forced to sign potentially damaging new contracts. Many gym members were left frustrated by the unavailability or poor condition of services once expected from their memberships.
[para. 15][para. 17][para. 18] The management, plagued with inexperience, faltered at lease negotiations, resulting in complete store closures rather than realigning costs. Employees and members found themselves in a precarious position as only a small set of facilities remained operational. Remaining locations face issues like overcrowded spaces and insufficient services, with high expenses further deterring the company’s ability to utilize new customer acquisition strategies.
[para. 19][para. 21] By 2025, Xiaohongshu bloggers listed only a few dozen operational outlets in Shanghai, and store management struggles became prevalent. With numerous refund applications accumulating to billions, operational challenges persisted with no resolution in sight. The apparent decision by L Catterton to withdraw support has been inferred by diminished management involvement and the cascading corporate leadership exits, further fueling speculation about the chain's future sustainability.
- In September 2023：
- Hosa Fitness experienced a complete shutdown, with its founder fleeing abroad.
- End of 2023：
- L Catterton increased its investment in Will's Fitness by RMB 100 million.
- In the first half of 2024：
- Will's began to close stores nationwide, except for Beijing and Shanghai.
- Summer of 2024：
- Will's Fitness received an additional RMB 40 million injection.
- July 31, 2024：
- Weikang Fitness's legal representative changed from Zhang Li to Yang Xiaoxu.
- October 8, 2024：
- Four directors, including Chairman Chen Yue, exited, with new appointments.
- November 2024：
- Will's Fitness unexpectedly began closing a large number of its locations.
- Mid-November 2024：
- Rumors and unease began to spread among Will's Fitness employees about unpaid salaries.
- By mid-December 2024：
- Arrears for personal trainers' salaries increased to two months.
- December 3, 2024：
- Will's issued a notice to members and partners acknowledging operational difficulties.
- Early January 2025：
- A list of 18 stores Will's is retaining began circulating.
- March 21, 2025：
- Caixin sent an email to Chen Yue for verification and received no response.
- End of March 2025：
- The last store this particular employee worked at also closed down.
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