Photo from Bimuyu.com

As if things weren’t already muddled enough in the O2 Sun Bookstore saga, three branches of the reportedly defunct chain – the Zhonguancun, Sanlitun Village and Fulicheng locations – are still operating in Beijing, according to an article on sohu.com.

Staff at the Xinzhonguan branch say that reporters have been coming to the store asking for details since news of the O2 Sun chain’s apparent closure came out last week. But as is often the case, they remain wary of answering questions and claim they too have been left in the dark about the Xiamen-based company going out of business.

“Our franchising fees have been paid in full and we have received no news from Xiamen about the closure,” said the owner of the Fulicheng branch, who added that since they are considered “franchise stores” (as opposed to stores under the direct management of the bankrupt chain) O2 Sun’s financial troubles have little to do with them and that his branch would “no longer use the O2 Sun name anymore and will continue operating under a new name.”

Unfortunately things aren’t working out so neatly for customers who had purchased pre-paid store cards that were previously good for discounted purchases at O2 Sun – the report says most were not notified of the impending closure and still have unused credit in the cards.

To make matter worse, the owner of the Fulicheng branch says his “new store” will not honor the cards – a decision that doesn’t seem like the best way to get off on the right foot with what remains of the customer base.

The situation at the Xinzhongguan branch is even more confusing. When we called the store, an unidentified staff member stated that they have no intention of changing the store name and also stated they will not honor the pre-paid O2 Sun card, explaining that it is only valid at “direct chain branches” and as a “frachise” store they are under no obligation to accept the pre-paid cards.

When pressed for more information on how, exactly, this policy works out for customers who still have money invested in the cards, the store employee referred us to a cell number belonging to a “Ms Chen,” allegedly a staff member of the O2 Sun chain, who in turn told us that the company is currently awaiting investment deals that are being brokered with the help of the Xiamen municipal government and the company will “reopen after an unspecified adjustment period.” According to an article on 163.com, a possible deal could go one of two ways: O2 Sun pulls in outside investment and maintains a majority stake (51%) in the company, or the Xiamen government works with O2 Sun to reestablish operations under a state-owned bookstore.

While we cannot vouch for the veracity of these claims, the pre-paid card conundrum that many O2 Sun customers now face seems to be an unfortunate, but typical scenario in Beijing’s boom-or-bust business environment. All too often a company that goes belly-up will simply disappear with what remains of the stock and/or a trail of unhonored pre-paid/membership cards – in these situations, former customers, even those who had signed contracts with the business (i.e. for gym memberships) are simply screwed over with little recourse.

For now, this much seems clear: If and when O2 Sun re-opens, they will surely need to do some damage repair in their customer relations department.

 Article by Ophelia Ren