Fitness chain with $23M revenue to shut down all Singapore outlets
True Fitness and True Yoga are closing all of their 10 Singapore outlets after being placed under provisional liquidation, while customers complain that they have been left with unused memberships.
Fitness chain True Fitness, along with its spin-off TFX and Yoga Edition brands, has announced plans to cease operations in Singapore. The Singapore arm of the company, True Singapore Group, is experiencing financial difficulties, leading to a winding-up process. The parent company, Hong Kong-listed Kontafarma China Holdings, revealed in a stock exchange filing that the personal fitness chains are struggling due to increased competition and rising customer acquisition costs.
Despite receiving additional funding, the True Singapore Group has faced significant liquidity pressure and underperformed in 2023, with revenue of approximately HKD181.2 million (US$23.1 million) and a loss of about HKD34.3 million. Unaudited accounts for the first half of 2022 showed revenue of around HKD118.4 million and a loss of HKD19.1 million.
As of August 31, 2022, the group had net liabilities of HKD429.3 million, all incurred in the normal course of business. Kontafarma has appointed provisional liquidators and scheduled an extraordinary general meeting on October 7 to propose a creditor-supervised liquidation process. This decision aims to optimally allocate resources towards the pharmaceutical business for the company's long-term benefit.
The Consumers Association of Singapore has received 28 complaints and reported losses exceeding SGD63,000 from affected consumers. Consumers Association president Melvin Yong has contacted the provisional liquidator to seek clarification on arrangements for affected consumers.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
