California Fitness closures leave members fearing loss of prepaid fees

Members of California Fitness & Yoga, once one of Vietnam's largest fitness chains, fear losing hundreds of millions of dong (VND100 million = US$3,879) in prepaid membership fees as branches close nationwide, leaving them without access to paid services.

Bao Phuong, 40, paid VND104 million for a premium lifetime membership in August but managed to attend only about 10 workout sessions before her regular club in Ho Chi Minh City's Vuon Lai Ward announced a temporary closure.

On Oct. 25, she was informed that the facility would suspend operations until Oct. 31 for restructuring. Members were advised to visit other branches, but the announcement did not identify any alternatives.

After checking the chain's 14 locations in the region, Phuong found that only two were still operating, at Aeon Mall Binh Tan and Binh Duong Square, both far from her home.

Her discounted Iconic membership promised lifetime access to all California Fitness & Yoga clubs, along with exclusive benefits including VIP lounges, swimming pools, reserved parking, wellness beverages and free towels.

"I barely got through ten sessions. Now, when I try calling my sales rep or the customer care hotline, nobody answers the phone," she said.

In Hanoi, Dang Le Anh Dung, 29, faced a similar situation after paying an additional VND20 million in late August to extend his membership until 2031.

Dung had been exercising at the chain's Lang Ward branch since November 2024. However, shortly after renewing his membership, the club began reducing services.

Fresh smoothies were replaced with bottled water in early September. By October, complimentary towels, workout clothes and drinking water had been discontinued, and the swimming pool was closed. The branch eventually shut down in mid-October.

Dung moved to another location in Vinh Tuy Ward, but it also closed on Oct. 25. Two other branches in Hoan Kiem and Thanh Xuan stopped admitting members the following day.

His sales representative apologized, saying she would never have encouraged him to renew had she known the company would face such difficulties.

By Oct. 28, VnExpress had confirmed that all nine California Fitness & Yoga locations in Hanoi were closed.

At the Hang Da and Royal City branches, security guards prevented customers from entering even though no official closure notices had been displayed.

Clubs in Da Nang and Bien Hoa also suspended operations on Oct. 24-25.

In Ho Chi Minh City, only the Aeon Mall Binh Tan location remained operational. The chain had operated approximately 35 clubs nationwide in 2025.

Attempts by VnExpress to contact the company's hotline and managers in Hanoi and Ho Chi Minh City were unsuccessful. The manager of the Binh Tan branch declined to discuss plans for compensating affected members.

CEO apologizes

Amid mounting complaints, California Fitness & Yoga founder and CEO Dane Fort released an apology video on the company's verified social media account on Oct. 19, addressing members, employees and business partners.

He promised to remove additional charges for certain group fitness and yoga classes, restore complimentary towels and drinking water, and cover parking fees for customers.

Fort requested 30 days to reorganize the business and said the company would announce a solution for long-term memberships by Nov. 19.

However, employees said the company's financial difficulties had been apparent for months.

Quoc Binh, who worked as a sales consultant at a Hanoi branch for four years, said he and his colleagues had gone without salaries for five consecutive months beginning in June 2026.

Despite repeated assurances from management, workers continued reporting to work in hopes of eventually receiving their wages. Some took additional jobs to cover living expenses.

On Oct. 25, staff received notices placing them on unpaid leave.

"The internal memo said we were pausing through Oct. 31 to reorganize, but none of us know if the doors will ever open again," Binh said.

He added that customers who had spent hundreds of millions of dong on membership packages were calling employees in distress, but staff could offer little reassurance.

California Fitness & Yoga sells four membership categories: Platinum, Premier, Iconic and Centuryon.

Basic packages cost approximately VND500,000-700,000 per month when customers pay in advance for 18-24 months, while premium memberships can cost hundreds of millions of dong.

The closures have created an additional financial burden for members who financed their packages through banks or installment payment providers.

Because the fitness company received the membership fees upfront, customers remain obligated to repay their loans even when they cannot use the services. Missing repayments could damage their credit histories.

As uncertainty over the chain's future grows, members have begun organizing to pursue possible legal action.

Since Oct. 27, hundreds of customers have joined online groups to collect membership agreements, payment receipts, bank statements and other documents for potential joint complaints.

A group in Hanoi has attracted more than 600 members, while a similar group in Ho Chi Minh City has nearly 230 participants.

Both groups are considering collective legal action if the affected clubs fail to reopen. Lawyer Diep Nang Binh, head of Tinh Thong Luat Law Office, said Vietnam's 2023 Law on Protection of Consumer Rights requires service providers to give customers written notice at least three working days before suspending operations.

If a business fails to fulfill its contractual obligations, customers may terminate their agreements, request refunds corresponding to unused services and seek compensation for damages.

Phan Thi Viet Thu, former president of the Ho Chi Minh City Consumer Rights Protection Association, advised affected customers to retain all supporting evidence, including contracts, receipts, bank records, closure announcements and communications with sales representatives.

Members should send formal refund requests to the legal entity identified in their contracts and specify a deadline for the company to respond, Thu said.

If the company fails to resolve their complaints, customers can seek assistance from consumer protection organizations, request mediation through local authorities or file civil lawsuits.

Criminal complaints may also be submitted if there is evidence suggesting unlawful appropriation of property.

For now, most affected members remain uncertain about whether California Fitness & Yoga will reopen its facilities and fulfill the commitments made to customers who paid substantial sums for long-term memberships.