On June 1, the well-known chain store Camo Yoga officially announced its permanent closure with no prior warning. Before the sudden announcement of the closure, Camo Yoga had been withholding salaries for a long time and urging users to purchase prepaid cards at the last minute. Chinese media reports indicated that just before “running away”, Camo Yoga also collected a sum of membership fees, leading consumers to suspect a premeditated “shell game”.
According to reports from China Fund News and Daily Economic News, on the morning of June 1, Camo Yoga’s official WeChat account released a letter titled “A Letter to Camo Members.” In the letter, Camo Yoga mentioned that due to external factors such as the pandemic and internal reasons such as the company’s failure to make timely adjustments to market changes, the funding chain had been broken this year.
In an effort to save the company, Camo Yoga tried various methods, including closing unprofitable stores and seeking financing, but failed to completely solve the problem, resulting in abnormal store operations. On the 21st, all stores had to be closed, allowing the company to focus on communication with the investment companies in hopes of finding a solution.
Camo Yoga stated that the investment company had recently made it clear that they would no longer invest in Camo Yoga. This meant that after 10 years of operation, Camo Yoga, due to financial issues, had to announce the permanent closure. This decision was both painful and inevitable.
For the remaining class sessions of members, Camo Yoga, with the help of many parties, reached out to colleagues in the yoga and consumer industries to come up with a preliminary transformation plan. Three institutions were mentioned willing to accept Camo Yoga members, including a Pilates studio, a chain of spas, and a medical beauty clinic. However, the announcement did not address refund or reimbursement measures and stated that they currently “have no ability to issue refunds”.
Public records show that Camo Yoga was founded in 2013, headquartered in Beijing, and by 2024 had over 30 chain-operated venues nationwide. Reviews from the public indicated that in Beijing alone, Camo Yoga had as many as 18 yoga studios, attracting a large number of consumers.
In July 2022, Camo Yoga completed an angel round of nearly 30 million yuan in strategic financing, led by Zhen Fund Investment, with Zero One Venture and Blue Elephant Capital as co-investors. In February of this year, Camo Yoga announced a strategic investment from ACG International Art Education Group, a listed company on the US stock market.
On May 1, Camo Yoga celebrated its 11th anniversary with a promotional event. Many consumers signed up for membership cards, only to receive notice of closure less than a month later.
On May 21, Camo Yoga’s official WeChat account posted a notice of closure. The notice stated that starting from May 22, Camo Yoga would be closed for adjustment, and all member rights would be automatically extended. The company would engage in deep communication with malls and relevant investment firms to reach agreements before notifying the specific reopening time.
According to a report by Jiemian News, reporters visited a Camo Yoga store in Beijing on May 22. The store was tightly closed with a closure notice posted, and nearby mall security personnel were stationed.
The mall’s relevant personnel stated that they had not received any notification from the store operator before, as the store had been operating normally on May 21. The mall only discovered the sudden closure notice today. Although the store’s contract had not expired, they were unable to contact the operator. Members who received the closure notice that morning came to check the situation. The mall has contacted the police and the Dongcheng District Sports Bureau and is currently awaiting investigation.
One Camo Yoga member said, “We were in class yesterday, and today the store is closed.” Ms. Jia, a member, stated on the 22nd that she had signed up for a 7-month prenatal private class with around 20,000 yuan worth of classes left. Although she could contact the store’s teacher, the teacher claimed to be unaware of the situation.
Before receiving the notice of termination of employment, Camo Yoga had already owed salaries to over two hundred employees for at least three months, with delayed salary payments starting as early as November last year. Some employees also mentioned that social security payments had been discontinued in April.
Camo Intelligent Health Management Co., Ltd. was listed as operating abnormally by the Chaoyang District Market Supervision Administration in Beijing on May 13 due to the inability to contact the registered address or business premises.
In recent years, sudden closures of fitness and yoga brands have become increasingly common.
In 2022, Shanghai Yushizhe Yoga faced a financial crisis. In early 2023, a renowned yoga brand in Shanghai, Fanyin Yoga, suddenly closed its stores, with reports of unpaid salaries to employees. Many consumers still had tens of thousands of yuan left unused, leading to a deadlock in refund claims and leaving over two thousand employees suddenly unemployed overnight. In June 2023, Fanyu Yoga, once known as the largest yoga brand in South China, faced similar operational issues, with multiple stores suspended, teachers unpaid, and members unable to obtain refunds.
Currently, the most worrying concern for members is the possibility of top management at Camo Yoga fleeing. Earlier reports from Chinese media introduced a new type of emerging grey occupation as “professionals involved in store closures,” who often appear as “third parties” in post-closure activities. They intervene when businesses face closure or poor management, colluding with institution heads ready to flee, organizing promotions to harvest the last batch of “leeks,” quickly changing legal representatives, transferring ownership to “debtors” lacking repayment capabilities, successfully shedding their debts, and leaving the mess for the “professionals involved in store closures” to handle.
The series of actions taken by Camo Yoga – from withholding salaries for an extended period to urging users to purchase prepaid cards at the last minute and closing abruptly – was reminiscent of Fanyin Yoga’s pre-closure actions. According to a report by China Business Magazine, Camo Yoga “harvested” membership fees and funds from medical beauty projects before “running away,” causing consumers to suspect a deliberate “shell game.”