Business Ethics: California Wow members seek compo.
California Wow is one of the most popular fitness operators in Asia. It operates mainly in China, Hong Kong, Singapore and Thailand. It has around 400 serving clubs which serve more than 3 million members.
Recently, California Wow (Thailand) has been on the first page of newspaper in Thailand for the past few months as it is currently being sued in the bankruptcy court by Bangkok Bank Plc due to its failure in management and providing service. What makes the company’s situation getting worse is that it does not take any responsibility. The company closed down without giving a notice to its members, hence, members still have their belongings in the lockers. Besides that, the company also failed to stop banks from charging its customers monthly fee as some members made their payments through credit cards. Henceforth, customers are ended up paying for fitness membership without receiving any service in return. By not being responsible for its failure, this causes the company to lose its trust from its customers around the world. It could also act as a barrier for new firms to enter and enjoy the markets. The business will be more competitive as customers will be more careful and aware of their decisions.
Article:
http://www.bangkokpost.com/news/local/312063/california-wow-members-seek-compo