SINGAPORE, Oct 8 — Around 3,300 creditors have lodged claims against collapsed gym chains True Fitness and True Yoga, nearly a month after the fitness group abruptly shut all seven of its Singapore outlets overnight, leaving members and employees in the lurch.
The scale of the fallout emerged today as appointed liquidators RSM Singapore confirmed that both companies had entered creditors’ voluntary liquidation following extraordinary general meetings held yesterday, The Straits Times reported.
The September 10 shutdown had caught employees and members by surprise, with staff reportedly receiving an email just an hour before the closures took effect.
Many turned up at the gyms the following morning only to find locked doors and repossession notices at the entrances.
The Consumers Association of Singapore subsequently reported receiving hundreds of complaints from affected members, whose losses from unused memberships, packages and services exceeded S$609,000 (RM2 million).
According to RSM Singapore, creditors at yesterday’s meetings confirmed the appointment of the liquidators and voted to establish a Committee of Inspection comprising up to five representatives to safeguard their interests during the winding-up process.
The liquidators will now oversee the recovery of assets and the winding up of the companies, while consulting the committee and other stakeholders.
Affected members, employees, vendors and other creditors can continue to submit new claims or amend existing ones through RSM Singapore’s creditors’ claims portal.
True Fitness and True Yoga operated under the True Singapore Group, which also ran the TFX and Yoga Edition fitness brands in the city-state.
The sudden collapse came amid mounting financial difficulties at the group, despite its continued revenue generation.
Its Hong Kong-listed parent company, Kontafarma China Holdings, had previously disclosed that the Singapore operations were burdened by substantial losses and net liabilities.
As of the end of August, the group owed its parent company HK$309.7 million.
It remains unclear how much creditors will ultimately recover through the liquidation process.