Web International English — one of the first English training companies in China, established in 1998 — is facing bankruptcy and has shut down some of its centers in Beijing and Chengdu, domestic media reported Thursday.
Though the company’s Shanghai centers are still operating, staff in the city told local outlet Xinmin Weekly on Wednesday that they’ve not been paid for two months but have continued giving classes for the sake of their students.
According to its official website, Web International has 154 training centers in 62 cities across China. The closures of three centers in Chengdu have reportedly impacted 800 students paying over 20 million yuan ($2.8 million) in tuition. In addition to the potential losses facing customers, nearly 100 Web International employees in Beijing filed complaints with the city’s labor arbitration office last month demanding that the company pay their salaries.
Web International’s sudden financial crisis isn’t the first such case involving an education franchise. In July alone, the consumer council of Shanghai’s Pudong New Area received 27 complaints related to the shutdown of early childhood education center KariBaby, plus another 25 complaints about a defunct dance studio. (Image: VCG)