Vietnam-based WeFit, a fitness startup modelled after ClassPass, has filed for bankruptcy after running out of cash in the wake of the COVID-19 pandemic.
WeFit announced its bankruptcy and termination of all services to its customers on May 11, saying the coronavirus crisis “has exhausted all of the company’s operating capital.”
WeFit’s parent company, ONACLOVER, said in an April 30 note that it was facing insolvency, and informed its creditors and shareholders to contact the Hanoi People’s Court for requests regarding their rights and interest.
Originally a service connecting users to gym facilities, the startup had later expanded into other health and beauty care services.
Troubles at the startup came to the fore in late 2019 as reports emerged of it having piled on debt. In February, the company’s deputy CEO Nguyen Hai Dang replaced its founder Nguyen Khoi as CEO. The challenges were exacerbated for WeFit as all gym and spa centres were forced to close during the COVID-19 lockdown.
Last week, DealStreetAsia reported that e-commerce startup Leflair also filed for bankruptcy after failing to pay its debt. Its two co-founders have joined local fashion retailer Maison as COO and CGO.
Leflair was backed by 500 Startups, Belt Road Capital Management and Caldera Pacfific, among others.