Did the founder run away?, 1.3 million member fitness brands

Recently, fashion and fitness brand One Mega Wade has been deeply mired in a quagmire, with rumors in the market that its founder has "run away", executives collectively "disappeared", employees suing for compensation, and members clashing... What is the real situation of One Mega Wade, who is in the midst of a public opinion storm? A reporter from Shanghai Securities News walked into the headquarters of Yizhao Wade to explore the truth.

Delayed property fees and elevator shutdown

At about 4:30 p.m. on August 22, after walking out of Yu Garden Station of Shanghai Metro Line 14, the reporter walked for about 5 minutes to the headquarters of Mega Wade - the Mega Wade Fitness City Gymnasium located at No. 1 Henan Middle Road, Huangpu District.

Entering the gate, the lobby was cold and desolate, in stark contrast to the bustling scene of the past. The reporter found that the two elevators at the end of the lobby have been shut down. According to employees, the elevator was shut down due to one megawatt defaulting on property fees.

Reporter/Photo by Shanghai Securities Daily at Yizhao Wade Hall

To the right of the elevator is the entrance to the VIP changing room for entering the swimming pool. However, the reporter found that the changing room was empty, the swimming pool had been closed, and it was pitch black inside.

Subsequently, the reporter arrived at the office area on the sixth floor, with only 6 or 7 employees present. A staff member explained that a few days ago, a member had a conflict in the office, and some employees were frightened, so they worked from home. Afterwards, the staff member also claimed that they were employees of a new company, not a member of the Mega Wade team.

Reported by Shanghai Securities Daily at the sixth floor office area of Yizhao Wade

Many stores are empty and empty

According to the official website of Yizhao Weide, since its development in 2001, Yizhao Weide has owned over 150 directly operated professional fitness clubs nationwide. It also has multiple brands including Yizhao Weide Fitness Academy, KIDS Youth Sports Growth Center, Fresh Choice Doctor of Rehabilitation, Shangyoga, Quick Fitness, MMAGYM, and more. With over 1.3 million members, it is a fitness service provider for many famous enterprises and high-end communities.

However, since the beginning of this year, with the closure of multiple stores under the umbrella of One Mega Wade, the controversy of frequent complaints from members against One Mega Wade has also intensified.

During the interview, the reporter happened to encounter a member coming to defend their rights.

In the small office area to the left of the Shanghai headquarters of One Mega Wade, three members who have come to defend their rights are already sitting around the table. A male staff member was chatting with the members present, during which time members kept coming to inquire about card refunds and other matters.

The staff member said, "We are just staying behind. This store will be almost closed by the end of this month, and no one knows what will happen in the end. Our social security has not been paid since May this year."

Several members hurriedly left after completing the "Member Complaint Record Form" as instructed by the staff.

Meeting Complaint Record Form, Shanghai Securities Daily Reporter/Photo taken

Two Shanghai aunties reported that their nearby store has been closed, and another store has been renamed. The staff of the renamed store informed them that only one megawatt users who opened cards in their own store can continue to use them, while cards opened in other stores cannot. They hope the company can handle it so that they can continue to use their fitness cards at nearby stores.

Regarding this, a staff member said, "I am not sure about this information and I do not have the authority. Currently, the only thing I can tell you is that the SIM card can still be used in all stores of OneMed."

"If your card can be used, then continue to use it. I do not recommend you to apply for a refund. Because, according to industry practice, if someone takes over, the old card can be used again. Of course, it cannot be completely stated, but it also depends on the final situation."

The staff member also reminded everyone, "No matter what phone call you receive, if you are asked to make up for something, I suggest you keep an eye out. I am powerless to do anything else. Currently, there is no solution, so we can only continue to wait."

What is the coverage of nationwide store closures for One Mega Wade?

A person in charge of Yizhao Wade told reporters that stores with rent arrears across the country have been gradually closed. Due to the involvement of a Zhejiang business consortium in the restructuring, the Shanghai store will be renamed and operated again according to the restructuring agreement. As for the original members, the Zhejiang Business Foundation will continue to fulfill the contract and provide services for a period of time. Stores in other regions may be closed due to rent arrears, or other restructuring parties may be in talks.

During a visit to Shanghai, the reporter found that a notice on the glass door of the Yizhao Weide Pinzun International store stated that due to equipment malfunction, the store was temporarily closed, and the signature date was August 16, 2023. The reporter found that more than 10 stores in Shanghai Wujiaochang, Yangming, Pudong Wanda, Chuangzhifang, Xiangyiwan, Qianshuiwan, Xizang North Road, etc. have been suspended from business after inquiring on the platform such as the one trillion Wade applet. The official WeChat account shows that there is no store information in the Hangzhou area.

In addition to the above stores, there are also multiple One Mega Wade stores marked as "suspended" on Dianping, and some upcoming new stores have recently "died". For example, One Mega Wade, which was previously announced to open at CITIC Pacific Shanghai Xintai Center on Daduhe Road, has recently had its logo removed outside its shopping mall.

Deceived consumers

Among the customers who came to defend their rights, Wang Hao's experience attracted considerable attention.

Wang Hao obtained the card in 2017 and is a loyal customer of One Mega Wade. According to him, in mid May this year, he received a call from a salesperson at One Mega Wade, who claimed that his card could be upgraded to a lifetime card.

"My old card balance is still over 50000 yuan. He said that after paying an additional 40000 yuan to apply for a new card, the old card can be refunded, and the new card will become a lifetime card." Wang Hao said, "However, when I saw negative information in August, I called the company's customer service hotline to inquire about the refund matters of the old card. The company stated that there is no record of a refund application. Until now, I cannot contact that salesperson."

Faced with the question from the journalist "What is one trillion Wade's opinion?", Wang Hao admitted, "There is no opinion, they just gave me a complaint form directly, and they said they would collect information and submit it."

Regarding refunds, Wang Hao is very pessimistic. "I think the possibility of a refund is very small. As far as I know, many people have been queuing for more than half a year without returning their cards."

"Before, I also considered finding a lawyer, but the lawyer told me that there are many such things, and even if I win the lawsuit, I won't get any money, which is not worth the loss." Wang Hao told reporters, "However, I will definitely report the case."

Reporter from Shanghai Stock Exchange Daily/Photo taken

The founder ran away?

Since May this year, One trillion Wade has been deeply embroiled in public opinion turmoil such as funding chain disruptions and delayed employee salaries. Recently, rumors have been circulating that Jin Yuqing, the founder of One Mega Wade, has fled and the executives have collectively disappeared.

However, according to relevant sources, it is suspected that Jin Yuqing, the founder of One Mega Wade, has "run away", but this is not the case. In fact, Jin Yuqing did not run away and has been in contact with the takeover party, while several executives have already resigned.

And the receiving party is the Zhejiang Business Foundation.

On June 20th, the official WeChat account of Yizhao Weide announced that recently, with the strong promotion of the Shanghai Zhejiang Chamber of Commerce, a Zhejiang business consortium was quickly formed to restructure Yizhao Weide. This restructuring plan aims to improve the company's management structure, financial condition, and market competitiveness, and Mega Wade will usher in a new beginning.

According to a reporter's investigation, the Zhejiang Business Foundation originally planned to take over all of the stores of One trillion Wade in Shanghai. Both parties plan to jointly establish a new company, with Zhejiang Business Group holding approximately 80% of the shares and Yizhao Weide holding 20%. However, due to disagreements between the two parties in the subsequent transaction details such as rent and introduction of investors, some transaction conditions could not be reached. Therefore, the Zhejiang Business Group adjusted its restructuring plan and only agreed to take over 30 stores in Shanghai for renaming and operation. Meanwhile, the shareholding ratio of Yizhao Weide in the newly established company was reduced to 3%.

"At present, both sides may be in a stalemate in negotiations," said a source.

The source said that the Zhejiang business consortium may also establish a new brand to take on the old members of Yimegawade. The receiving party will follow the new charging model and membership system for translation. Whether the old members will accept the translation plan still requires negotiation between both parties. However, generally speaking, the receiving party will not accept refunds from old members.

Before the Zhejiang business consortium participated in the restructuring, Yizhao Weide also announced the completion of the investor's financing.

On May 23rd of this year, amidst rumors of the company facing bankruptcy crisis, the official WeChat account of One trillion Wade announced that the company had completed its first round of financing of 115 million yuan. It is reported that this financing is led by Junzhuo Capital, committed to improving the operational capabilities of the store.

However, the content has been deleted so far. According to insiders, in fact, the company's claim of 115 million yuan in financing received in May was not received and ultimately ended in failure.

Subsequently, under the promotion of the Shanghai Zhejiang Chamber of Commerce, the Zhejiang Business Foundation announced the restructuring of One Megawatt.

According to public reports, Jin Yuqing, founder of One Mega Wade, responded to the controversy through social media in early July. In a video released earlier, he stated that he would never run away. However, several staff members at the headquarters have stated that they are currently unable to contact all executives of the company.

The reporter contacted the relevant person in charge of Yizhao Weide through multiple channels and learned that "Jin Yuqing may not be in China at present, but she has not lost contact and has been actively communicating with local governments, Zhejiang Business Foundation, and other trading parties." According to the person in charge, Jin Yuqing has already mortgaged and sold a villa in the early stage, and transferred more than 30 million yuan into the company's joint management account, paying the wages, pension, and provident fund fees owed to employees before.

Jin Yuqing's Tiktok account has been cancelled. However, due to the transaction differences between Yizhao Weide and Zhejiang Business Group, the current situation of restructuring and acceptance of Shanghai stores seems to be not smooth. Next, can the restructuring of One trillion Wade by the Zhejiang Business Foundation proceed smoothly? How to protect the legitimate rights and interests of more store members who owe rent and are closed, and how will One Mega Wade clean up the mess? The reporter will continue to follow up on the report.