Exit Scenario (Shutting Down) 12/2/2019

WeClub, former Snapbar, was released in the market in November 30th, 2018. WeClub is an application for the young adults in California who loves to go out and have fun in clubs. It allows them to browse clubs easily with personalizations as well as filter. They changed their company name in December 2nd, 2018 from Snapbar to Weclub because Snapbar sounded like existing app “Snapchat”. Weclub had a hit in the beginning when they just released their app among not only young adults, but as well as adults in their thirties and fourties.

Weclub continued their business until their CEO ran away abandoning the company because of other competitors in the market. The CEO just abandoned the company without handing over to someone else, so Weclub went bankrupt since it was the CEO who had all the stakeholders that supports the company. They could’ve been not shut down if the CEO of Weclub properly passed their chair to other person to be in charge, meanwhile the CEO chose to hide the stakeholders’ information from the company and moved to the competitor’s company with the stakeholders.

That was the beginning of the downfall of Weclub. After the CEO left the company, the employers could not get paid by the company because there is no one in charge and they can’t make money out of Weclub since it’s the CEO who has the copyright over the name Weclub. They could not even change the name of the company because it would require the ex-CEO’s permission. Since the employers did not get paid and they couldn’t continue their business, Weclub exited the market in September, 2019.