Apologize!, Joining a well-known early education institution

Recently, the well-known early childhood education institution Meiji has once again been embroiled in a store closure scandal, with a large number of stores closing in Guangzhou, Shanghai, Chengdu and other places. Many parents of students have reported difficulties in refunding fees, closing stores for no reason, and forcibly transferring classes. Some even suspect that the business has "run away with payment".

Regarding the closure of some franchise centers, Meiji headquarters recently issued a statement apologizing through WeChat account "Meiji International Early Education" and stated that they will coordinate the development of a solution.

Meijim is once again embroiled in a store closure scandal

Since the beginning of this year, the well-known early childhood education institution Meiji has been embroiled in multiple store closures. Many parents have reported that "before the class is over, Meijim closes his shop and classes, and the demand for a refund has not been resolved for a long time."

On the Black Cat Complaint Platform, there are currently over 940 complaints related to Meiji. Most of the complaints from users are about Meiji's difficulty in refunding fees, unjustified closure of stores, forced transfer of classes, and lack of communication. Many parents suspect that the merchant has run away with the payment.

Through reading, it was found that the tuition fees of most students are as high as tens of thousands of yuan. Previously, there was a promise that the remaining class hours could be transferred or refunded, but it was ultimately not resolved. Even some parents have reported that the store closed on June 30th this year, just after paying the money and not even attending a class.

In addition to the difficulty of refunding fees for a large number of students, Meijim's teachers and staff are also facing the situation of unsuccessful salary negotiations.

According to the cover news, at the beginning of this year, Chengdu Meijim Early Childhood Education Institution was suspected of "running away". Ms. Ye, the teacher of Meiji, reported that at the beginning of this year, Meiji was suspected of running away and changed to a new investor, and was able to resume classes on March 1st. Both the new and old investors have signed an agreement, and the new investor will be responsible for the previous courses and the teacher's salary arrears. But on June 27th, Meiji closed three stores because he couldn't pay the mall rent.

Ms. Ye stated that Meiji has 6 stores in Chengdu with over 100 staff members, and with the addition of previously resigned employees, the total amount of salary arrears has reached about 4.12 million yuan.

Meijim issued a statement apologizing

Recently, in response to the closure of some franchise centers, Meiji headquarters issued a statement apologizing through WeChat account "Meiji International Early Education" and stated that they will coordinate the development of a solution.

In the statement, it was stated that due to factors such as lower than expected overall macroeconomic recovery and industry environment, some Meiji franchise centers in Guangzhou, Shanghai, and Chengdu have made decisions to merge or close stores as independent operating entities. Meiji headquarters deeply apologizes for any inconvenience caused by the closure of these centers to all member heads!

Meijim headquarters will coordinate with the above centers to develop corresponding solutions for the unused hours of members based on the actual situation, and will maintain communication with the center, continuously monitor subsequent progress, and strive to protect the legitimate rights and interests of members to the greatest extent possible and minimize the impact on their families.

In addition, regarding the possible illegal sales behaviors of some staff members in the Meiji franchise center, such as claiming to be directly operated stores, Meiji headquarters attaches great importance to it and has ordered relevant centers to rectify it. A dedicated person will be dispatched nationwide to investigate whether similar illegal sales behaviors exist in each franchise center, and will also coordinate with the franchise center to strengthen business training for staff. Member parents can inquire about the Meijim franchise center through the official consultation hotline. Meijim headquarters will continue to firmly uphold and fully protect the right to know and choose of member parents.

Meijim headquarters stated that they will strictly follow the requirements of relevant laws and regulations to carry out daily business operations, and provide systematic personnel training, operation guidance, and other support to the authorized franchise center. Meiji headquarters reserves the right to initiate legal proceedings to protect its legitimate rights and interests in response to illegal activities in some franchise centers. Regarding the behavior of individual internet users and self media who take the opportunity to confuse the public and maliciously smear the Meiji brand, Meiji headquarters reserves the right to pursue relevant legal responsibilities.

However, it is worth mentioning that just a month ago, Meiji headquarters made a statement stating, "Currently, Meiji headquarters and more than 400 authorized franchise centers nationwide are operating normally."

In response to the "store closure trend" reported by parents, Meiji stated, "In response to changes in the external market operating environment, some franchise centers in Meiji have made corresponding business adjustments and layout optimization. The purpose is to cope with the current market environment's business pressure and enhance the ability to resist market risks."

Significant loss in performance

According to Meiji's official website, Meiji 40 focuses on early childhood quality education and has established nearly 800 centers for early childhood quality education in 38 countries and regions. Meijim has developed a curriculum system based on his professional experience in early childhood quality education, motor function, sports, dance, and gymnastics. Through systematic and structured courses, he is committed to helping children aged 0-6 strengthen their physical fitness, cultivate good social skills, build self-esteem and confidence, and assist in the development of comprehensive qualities.

Meiji entered the A-share market at the end of 2018, but its performance since going public has not been optimistic. In 2020, its performance declined significantly and it has been in a loss making state ever since.

On July 14th, Meiji released its 2023 semi annual performance forecast, which showed that during the reporting period, the company's net profit attributable to shareholders of the listed company was a loss of 70 million to 90 million yuan, compared to a loss of 48.9727 million yuan in the same period last year.

In response to changes in performance, Meiji stated that during the reporting period, the domestic macroeconomic situation was still gradually recovering, and social consumption capacity continued to decline. The accumulated operational pressure of Meiji Center in the early stage was concentrated and released. On the one hand, it faced operational difficulties such as changes in the operation of commercial complexes, financial pressure on franchisees, and personnel loss. Some Meiji Centers had high operating costs; On the other hand, the decline in China's birth rate has also affected the development of the early education industry market.

Due to the phased and permanent closure of various centers of Meiji, as of June 30, 2023, the number of contracted early education centers by Meiji has decreased by 109 compared to the same period last year. The company's operating revenue and profit have decreased year-on-year, resulting in a corresponding decrease in net profit attributable to shareholders of the listed company.

As of the time of publication, Meiji reported a total market value of 3.13 billion yuan at 3.81 yuan.