THE sudden closure of Wax in the City is the latest in a recent series that has rocked the beauty and wellness industry.

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. Both were spas offering services like facials and massages.

Almost 600 customers, who each paid between a few hundred dollars and $10,000 upfront for massage and facial packages, approached the Consumers Association of Singapore (Case) to seek redress.

The recent closures have propelled the industry into the top 10 list of businesses hit with the most complaints for the first time last year.

In such cases, said Case executive director Seah Seng Choon, prevention is better than cure. It is difficult to crack down on such errant business owners, he said. When a company winds up, the liquidator usually collects all the assets of the company and pays the secured creditors, like the landlord, first.

The balance, if any, will then go to unsecured creditors like the customers, he said, urging the affected consumers to file a claim with the Small Claims Tribunal. But the best bet, he said, is not to buy packages at all but to pay as you use. Pre-payment schemes are unregulated and risky, he added.

This article was first published in The Straits Times.