BEAUTY chain Wax in the City has closed, leaving thousands of its customers with unclaimed amounts on their packages totalling several thousand dollars.

The chain closed its last outlet in Orchard Central mall on March 25. Its other outlets – in Tanjong Pagar and Circular Road – closed from late last year.

It is unclear exactly how many clients have pre-paid sessions, but 10 who spoke to The Straits Times had each bought packages worth between $535 and $1,688.

Most said they learnt of the chain, which began operations in 2008, through cold calls from the outlet’s managers offering discounted waxing and manicure services. They would then be given the hard sell after attending an introductory session.

More than 200 customers have gone to the Consumers Association of Singapore (Case) for help; it is understood that 40 others have filed police reports. And almost 300 have banded together on social networking site Facebook to share information on what they can do.

Bank manager Daphne Low, 33, paid $1,688 for a package last May. She said she managed to use just $600 worth of services because it was hard to secure appointments.

‘I called them so many times to try to book an appointment, and I could not get through,’ she said. ‘Then, last week when I finally got through, I was told that the spa had closed down.’

She has since made a police report and filed a complaint with Case and a claim with the Small Claims Tribunal.

Ms Maria Gonzalez, 28, forked out $535 for a package on March 14 but did not even get to use it.

‘I feel so cheated and just so upset,’ said the marketing manager, who has filed a claim with the Small Claims Tribunal.

Attempts by The Straits Times to contact the chain’s director, Mr Zhuo Weihua, 27, a Singaporean, were unsuccessful.

The Straits Times visited his home in Boon Lay yesterday, where his father said he had not seen him for some time and did not know he ran such a business.

According to manicurist Sally Li, who had worked at the company for just three months, staff were given a day’s notice of the closure.

‘They were still selling new packages till the very end,’ said the Chinese national, who signed a two-year contract with the company. ‘They just told us we didn’t have to come to work the next day. Now I have to leave the country, or try to find a new job.’

The abrupt closure is the latest in a series that has rocked the beauty and wellness industry recently.

Clients were left high and dry last November when Wellness Village suddenly closed its outlets at the Pan Pacific Hotel and Pagoda Street. Less than five weeks later, Simply Spa at the Parkroyal Hotel on Kitchener Road closed.

Case’s executive director Seah Seng Choon said the association will contact Mr Zhuo to seek redress. He urged consumers to file with the Small Claims Tribunal.

Mr Seah’s advice to consumers: Pay as you use.

‘Consumers need to understand that prepaying for packages involves risk such as sudden company closures. It also puts them in a tight spot if systems are down and they can’t make bookings,’ he said. ‘There is no way for a company to guarantee that it will not shut down before a customer’s package is used up.’

The police are investigating the matter.

Article credit:
Tue, Apr 06, 2010 The Straits Times

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