Thread: Thailand: California WOW faces bankruptcy suit

Wow, what a surprise.

Perhaps the outstanding bank loans didn't only go to building gyms-



http://www.nytimes.com/2009/09/16/gr...-thailand.html

No shit Sabang that guy Levine bled the place dry. But he got himself well connected with hi/so Thais and was able to pull the scam off.

whaoo, nice place

nice home theater

Originally Posted by aging one

No shit Sabang that guy Levine bled the place dry. But he got himself well connected with hi/so Thais and was able to pull the scam off.

indeed, it seems that he took a lot of people from HK on a ride

Gym membership are like any MLM, it's based on volume and deception

Wow, good on him.

^ I disagree; scammers are scum imho; & this shite was always just another yank scammer...

His face just screams to be hit doesn't it....such a smug looking fucker....

^ indeed, and he is also a good looking fellow

and that was before,

what happened ? Thailand with too many nights in Soi Eric ?

Never had a business plan. His only plan was to take the membership for a ride and then vanish into Hong Kongs mirage. Did quite well on the SET as well with the cat walk ladies I have been told.

Originally Posted by Butterfly

^ indeed, and he is also a good looking fellow

Holy guacamole, I wouldn't borrow 20B to this guy...

A bit more in today's report

California Wow comes up lame in bankruptcy filing | Bangkok Post: business

California Wow comes up lame in bankruptcy filing

• Published: 27/04/2012 at 02:30 AM
• Newspaper section: Business

Members of the embattled health club California Wow Xperience will have to wait for legal proceedings in the Central Bankruptcy Court before seeking damages or claims, says the Consumer Protection Board.

If the court declares the company bankrupt, then club members can file claims for damages from the Legal Execution Department.

One consumer protection official said the agency was willing to assist affected consumers seeking advice.

California Wow was hit this week by a 75.87-million-baht suit filed by Bangkok Bank for unpaid debt.


California Wow Xperience: Is that a black hole under the entrance way?

In a filing to the Stock Exchange of Thailand, California Wow disclosed that Bangkok Bank had filed a bankruptcy suit with the court seeking payment of debt worth 71.9 million baht and interest of 3.97 million. The lawsuit, which was dated December 2011, sought claims on a 15-million-baht overdraft, a 6.9-million-baht loan and a 50-million-baht promissory note. The loan and promissory note were secured by the leasehold rights for California Wow's Chaeng Watthana and Ratchayothin branches.

George Saab, the chief of staff for the company, told the Stock Exchange of Thailand it was continuing to make progress in its rehabilitation plan, and acknowledged the bankruptcy suit could result in "difficulties in acquiring future bank finance".

California Wow reported 2011 net losses of 246.6 million baht, an improvement compared with losses of 467.3 million the year before.

In February 2011 the company was warned by the SET that it faced possible delisting due to poor performance and the fact that company auditors had issued a disclaimer of opinion on the firm's financial statements. In October 2010, the company reported it had defaulted on debt of 58.47 million baht to TMB Bank.

California Wow, launched in 2004 by Eric Levine, listed on the SET in November 2005. Major Cineplex, the country's largest cinema operator and a one-time partner of Mr Levine, sold off its stake in 2009. Mr Levine retains a 6.6% shareholding in the company, with Elite Power Holdings the largest shareholder at 23% followed by Nattapol Chulangkul at 12.07%.

Originally Posted by StrontiumDog

California Wow, launched in 2004 by Eric Levine, listed on the SET in November 2005.

Amazing- no decent stock exchange would let an infant company with such a short trading history list so quickly. Still, this is the country of TPI and Sondhi Lemonskulls various pranks- and of course the 'entrepreneurs' often go into protest politics when called to account. I suspect however Eric Levine will seek the sanctuary of different climes.

^Great connections in the "Gay Community." Many TD members for sure.

CAWOW will take a powder | Bangkok Post: business

CAWOW will take a powder

• Published: 19/05/2012 at 03:52 AM
• Newspaper section: Business

California Wow Xperience Plc (CAWOW) will next month suspend operations at its money-losing Ratchayothin, Chaeng Watthana, Sukhumvit Soi 23 and Silom branches as part of its business rehabilitation plan.


California Wow Women, developed at a cost of 160 million baht, opened in Sukhumvit Soi 31 in 2006 but has since closed.

The financially troubled fitness club operator yesterday said the Central Bankruptcy Court has accepted its petition to begin the process of reorganising its business to strengthen finances.

The court's decision will allow the company to invest in its more popular locations and introduce new, smaller outlets.

Renovations and general refurbishment will begin immediately in the remaining clubs. The company will be installing more equipment, including strength training equipment, elliptical trainers and treadmills.

New services are also being added such as group exercise classes, innovative yoga classes and night-time workout parties.

California Wow plans be the first in Thailand to introduce the "compact" fitness club concept.

Outlets will be smaller and located closer to the offices and homes of members, reducing costs by avoiding high-rent malls.

The compact clubs - branded Wow Express - will be 1,000-1,200 square metres in size compared with the 2,500-6,000 sq m clubs California Wow currently operates.

California Wow plans to open its first compact club here next year.

Surasak Kongpanya, California Wow's director, said each outlet will cost 25-35 million baht.

He said about 10 such clubs could be opened in the next three years in Bangkok, and the company has already appointed a property agent to scout for suitable locations.

"California Wow has a good business model that is proven by its successful clubs such as the Siam Paragon, Pin Klao, Ekamai and Esplanade branches as well as the Chiang Mai and Pattaya clubs, which show good potential. The company can be strengthened by concentrating our best resources in these clubs," he said.

California Wow was hit last month by a 75.87-million-baht lawsuit filed by Bangkok Bank (BBL) for unpaid debts.

BBL is seeking repayment of 71.9 million baht in principal and 3.97 million baht of interest. The lawsuit, filed last December, seeks claims on a 15-million-baht overdraft, a 6.9-million-baht loan and a 50-million-baht promissory note.

The loan and promissory note were secured by the leasehold rights for California Wow's Chaeng Watthana and Ratchayothin branches.

In February 2011, the company was warned by the Stock Exchange of Thailand that it faced possible delisting due to poor performance and the fact that company auditors had issued a disclaimer of opinion on the firm's financial statements.

In October 2010, the company reported it had defaulted on 58.47 million baht of debt owed to TMB Bank.

A BBL source said that bank's legal action will proceed, as the customer has failed to service debts.

"Basically, a non-performing customer entering a legal process can still run its business," said the source.

"The company can build up member confidence to strengthen its operations."

Why arent they after the bastard Eric Levine? He is the one who did all the cheating and fabricating of the accounts.

^ he was probably helped with hiso Thai,

Any action taken against the guy would only result in screams of, ''Anti Semite actions.''
He's nothing but a born again conman.

Originally Posted by fortesquesmythebrown

Any action taken against the guy would only result in screams of, ''Anti Semite actions.''
He's nothing but a born again conman.

Speaking of born again con men, what's the latest on Rude Noise?

The fitness leisure industry is cyclical and utterly dependent upon the economic winds prevailing at any given time. Times get tough the fit leave and save their pennies.

Membership subscriptions are also notoriously unreliable in that folk join with the best of intentions but the greater proportion will lapse within the first year. The trick is to target location with a wide demographic spread in an area which is less susceptible to recessions and where there is little or no competition.

Wow expanded too much and exhausted their market. With every condo block having its own fitness centre and the fact that most commercial fitness clubs here in the city rely on revenue from poofs using their facilities to cruise for fresh meat it was inevitable the market size was insufficient to survive.

There are just so many poofs and hiso bimbette chickenheads to go round and it seems Wow have finally grasped the reality but too late.

Customers, staff to sue failing fitness centre - The Nation

California WOW

Customers, staff to sue failing fitness centre

THAMMARAT KITCHALONG
THE NATION August 22, 2012 1:00 am

A press conference yesterday an official from the Foundation for Consumers delivers a statement about the complaints filed by clients of the California Wow fitness centre, which is only operating its Siam Paragon branch at present.

A consumer protection foundation yesterday encouraged customers of once-popular California WOW to register complaints with it so that lawsuits could be filed against the firm for the return of membership fees.

Thirty California WOW fitness centres registered their complaints with the Foundation for Consumers yesterday, seeking help for the refund of the fees.

Saowanee Chamchaliew, a staff member of the foundation, said it would receive complaints until the end of this month before making joint legal efforts against California WOW. She said customers should call 02-248-3737 to file their complaints.

The foundation would gather the complaints and inform the Office of the Consumers Protection Board, asking it to sue the firm.

California WOW started its fitness centre business in Bangkok to much fanfare 12 years ago. The firm reportedly suffered from a liquidity crunch early this year.

Earlier, Bangkok Bank filed a lawsuit with the Bankruptcy Court against California WOW, seeking a court order to force the firm to repay its loan of Bt71.90 million plus Bt3.97 million in interest.

California WOW has shut down seven of its eight fitness centres, leaving only the centre at Siam Paragon open, prompting many customers to complain as they could not travel to the heart of the capital to use the service.

Saowanee said the Office of the Consumers Protection Board had told her that California WOW was instructed by a court to resume services at all branches and it was not allowed to change its contracts with customers.

A 48-year-old housewife, who identified herself as Sa, said she applied to be a member of the Ratchayothin branch after a salesperson called her and encouraged her to exercise. She ended up paying more than Bt150,000 during her time with the centre.

She paid an annual membership fee of Bt17,599, and Bt55,242 for hiring trainers plus Bt3,200 a year for renting a locker. She also paid Bt888 a year as a membership-keeping fee. She paid another Bt40,000 to join a weight-reduction course.

A 63-year-old woman, calling herself Tik, said she applied as a member at the Pinklao branch just two days before it closed. She lost over Bt28,000.

On Monday, 20 laid-off trainers of California WOW represented nearly 1,000 employees of eight branches of the fitness firm to file a complaint with the Labour Protection and Welfare Department.

The trainers led by Chayungkorn Taptimthong, 36, submitted their complaint to Manote Saengkaew, director of the labour protection and problem solving division.

Chayungkorn told reporters that California WOW allegedly owed salaries to nearly 1,000 employees of all eight branches. He said the employees were forced to resign without receiving severance pay and they were earlier forced to withdraw their contribution money from the provident fund so the company would not have to pay its contributions to the fund.

Chayunkorn said the employees were not sure whether the firm had paid the money deducted from the workers' salaries to the Social Security Fund or not.

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.

Arthit said his department would summon the employer to testify again and wrap up the investigation in about 60 days.

Originally Posted by StrontiumDog

She paid an annual membership fee of Bt17,599, and Bt55,242 for hiring trainers plus Bt3,200 a year for renting a locker. She also paid Bt888 a year as a membership-keeping fee. She paid another Bt40,000 to join a weight-reduction course.

And I thought my 150 Baht a month gym, that the rest of you subsidise for me, was expensive