Apax Leaders still owes parents nearly 94 billion VND in tuition fees and is requesting to pay 4.5 million VND per person per quarter, starting from 2025 until the debt is fully settled.
This information was included in a report submitted to the Ho Chi Minh City People's Committee on the situation of Apax Leaders foreign language centers by the Department of Education and Training on March 11th. According to the Department, Apax had nearly 11,300 students in Ho Chi Minh City during the past period. After 39 out of 41 centers ceased operations, parents of 4,400 students wanted to withdraw their tuition fees, 6,000 students deferred their studies, and 839 students are still enrolled.
Apax stated that the total amount owed to parents is over 108 billion VND, of which approximately 14.2 billion VND has been paid. The company proposed a repayment plan starting in 2025, paying each parent 4.5 million VND quarterly until the debt is fully repaid.
In addition, Apax owes 11.5 billion VND in teacher and staff salaries, and 9 billion VND in rent. According to information from the Social Insurance and Tax Department of Ho Chi Minh City, the Apax Leaders branch is also overdue by more than 32 billion VND in various insurance payments for employees and 15 billion VND in taxes, as of the end of last year.
The Apax Leaders center in Phu Nhuan district closed on March 4th. Photo: Huyen Nhung
The Department stated that during the meeting on March 6th, Apax requested the dissolution of 26 centers and the reorganization and relocation of 13 centers. Regarding the two centers currently operating in District 6 and Phu Nhuan District, Apax also requested a temporary suspension until June. An Apax representative stated that the company is facing significant financial difficulties, only having sufficient funds for online teaching and student review sessions. The company needs more time to develop a plan to resolve its current debts and outstanding issues.
According to the Department of Education and Training, Apax needs to report a specific plan and schedule for tuition fee repayment to parents before March 15th. Of the 39 Apax centers currently suspended from operation, the Department will decide to dissolve 26 centers. The remaining 13 centers will be dealt with after the Department reviews the relevant legal documents and evidence.
At the same time, the Department will encourage foreign language centers in the area to support and accept Apax Leaders students with preferential tuition fees, in case these centers are unable to continue operating.
Apax Leaders is a chain of English language centers for children, licensed since 2016. On its website, the company states that it has 120 centers nationwide, with approximately 120,000 students.
In 2020 and 2021, many parents paid for their children's English classes at Apax Leaders, but the courses were interrupted due to center closures. After numerous negotiations, in March of last year, Apax divided them into two groups with different repayment schedules. Many parents in Group 1 received their full refunds in three installments, spanning from June to August 2023.
The second group was promised a refund of tuition fees in 5 installments, each 20%, expected from October 2023 to April 2024. However, Apax subsequently failed to fulfill its commitment. Hundreds of people flocked to the center in Phu Nhuan district to demand their money back. Apax then proposed a new repayment schedule, extending until the end of 2025, before announcing its insolvency at the end of 2023.
Le Nguyen
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