'They didn't tell us upfront': True Fitness staff, gym members caught off-guard by sudden closure
Singapore's consumer watchdog says it received 28 complaints from True Fitness members, with reported losses of more than S$63,000.
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SINGAPORE: True Fitness and True Yoga’s abrupt closure on Friday (Sep 11) morning caught staff and members by surprise, with employees gathering at the group's headquarters for answers and customers turning up at outlets to confirm the news.
Employees were seen at the group's Claymore Hill headquarters from about 1.30pm, entering the office in batches. Staff from the appointed insolvency practitioner, RSM SG Corporate Advisory, were also present.
The mood in the meeting was "tense" because there was no representative from True Fitness to answer questions, said Adrian Pratab, 43, team lead for instructors at Millennia Walk.
"It was just the side of the liquidation company. So I was a bit disappointed because our HR was not around. There were a lot of questions that I wanted to ask HR regarding this matter, and nobody was there," he said.
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At the meeting on Friday, provisional liquidators asked employees to sign a notice of termination of employment with immediate effect, and provided information on how to submit their wage claims.
Project executive Arivinthan Rajanthran, 33, said employees were told that liquidators would try to recover as much as they could to compensate both employees and gym members.
He said he was owed salary for about 10 days of work as well as his notice period, and that employees had been advised to file their salary claims.
STAFF SCRAMBLING FOR ANSWERS
Things began unfolding past 10pm on Thursday, after an ordinary day at work, when staff received messages telling them to return to the gyms to retrieve their belongings because every outlet was closing, said senior personal trainer Mani Jr, 28.
Another message in the early hours of the morning informed employees of the liquidation.
"It was such a mess," Mr Mani told CNA, adding that it left him "perplexed and confused".
Mr Mani, who works at the Great World outlet, said trainers earn a commission of S$90 to S$120 (US$70 to US$100) per session on top of their base salary. He is owed both his commission and salary for work done so far in September.
He added that about a month ago, trainers were asked to pause selling packages to new clients. There was no alarm at the time, he said, because they were told this was because the pay structure was being changed to one that would be better for them.
Other plans also appeared to be going ahead, such as the Great World fitness centre's planned move to Funan shopping mall, he said.
For now, his foremost concern is his clients who are owed personal training sessions, and his colleagues who are in Singapore on work passes.
Mr Pratab similarly lost his job abruptly in 2016, when California Fitness closed all its gyms in Singapore. Over a decade at True Fitness, the Malaysian work pass holder has built his life in Singapore with his wife and child.
"Unfortunately, the way how they informed us is not very nice, very last minute," he said, adding that there were no warning signs of trouble despite supervisors asking management directly about their future plans at a meeting about a month ago.
"They couldn't be straightforward and tell us the truth," he said. "We were a bit disappointed that actually they were about to close, but they didn't tell us upfront."
He added that he would have made plans for other employment earlier had he received prior notice.
"UNPRECEDENTED" CHALLENGES
True Group operates 10 fitness centres in Singapore across three brands: True Fitness, TFX and Yoga Edition. Its parent company is Hong Kong-listed Kontafarma China Holdings, which filed a bourse listing on Thursday night stating that the directors of True Fitness and True Yoga in Singapore were unable to continue business due to their liabilities.
The company cited "unprecedented" challenges including competition from boutique gyms, exercise facilities in condominiums and private residences, and the rise of digital training options.
The fitness centres are closing as part of the liquidation process, with insolvency practitioners provisionally appointed.
True Group, which was established in Singapore in 2004, earlier pulled out of Malaysia and Thailand in 2017, and Taiwan in 2025.
The mismanagement of the closures of the Malaysia and Thailand businesses was the subject of a lawsuit in Singapore, which True Fitness and True Yoga won against True Group's founder and then-CEO in 2022.
A High Court judge found that Mr Patrick John Wee Ewe Seng, who is no longer CEO, had allowed the sale of long-term memberships while knowing that they faced impending closure.
When CNA arrived at the Great World outlet at about 10am on Friday, representatives of the landlord were inside the unit, with no gym employees on site. A sign outside stated that the landlord, GWC Commercial, had re-entered the premises and the tenancy was forfeited as a result.
It was a similar picture at Millennia Walk, where True Group's exercise facilities take up more than 41,000 sq ft on the mall's second floor. No employees were present on Friday morning, and a sign at the entrance listed email addresses for members to contact the provisional liquidators.
One member at Great World told CNA she paid over S$6,000 (US$4,700) for a “lifetime” membership eight years ago, which gave her access to True Fitness clubs across Asia. The 43-year-old starts every morning with a workout at a True Fitness gym.
“Suddenly, I feel lost. Like I woke up – what am I going to do this morning? I think a lot of people feel that way,” she told CNA outside the True Fitness gym at Great World shopping mall.
“It’s sad because we forged a lot of friendships in this gym,” she added. “Most of the sentiments of the members here (are) it wasn’t just a gym, it was really considered home.”
She decided to check the outlet, which is the nearest to her home, after hearing chatter about the closure among members on Thursday night, and seeing the news on Friday morning.
Members had been told by staff about a month ago that the outlet's last day would be Sep 13 due to "lease alignment" issues, she said. But they had thought they would be able to continue exercising at other outlets.
While she felt newer members should seek refunds, she said it was "not worth the effort" for her to try to recoup some of her fees.
Accountant Rita Carolina, 45, who regularly took yoga and pilates lessons three to four times a week during her lunch hour, stopped by the Millennia Walk outlet on Friday to see the shuttered facilities.
She told CNA that it was not just members but instructors who were caught off-guard by the closure.
Her three-year Yoga Edition membership is nearing its November expiry, but she had recently paid over S$1,000 for 50 pilates sessions, of which she has used only about half. She is considering whether to try to get some money back for the unused classes.
Retiree Eddy Koh, 65, paid S$2,640 upfront in June for a two-year True Fitness membership with one year of complimentary access.
"I thought that because they've been around for so long, they will be very reliable," he said, adding that he had also had a good experience at the group's TFX gym some years ago.
“They were still collecting membership, encouraging everyone to join even though they knew that they were in dire straits already.”
Mr Koh said he was pessimistic about his chances of a refund under consumer protection laws, but would contact True Fitness regardless to try to recoup some losses.
He has also resolved to keep to year-long or monthly memberships at his next gym.
OVER S$63,000 IN LOSSES: WATCHDOG
The Consumers Association of Singapore (CASE) said it has received 28 complaints as of Friday from members affected by the closure, with reported losses of more than S$63,000 in unutilised memberships, packages and services.
CASE president Melvin Yong said the association had reached out to the provisional liquidator and would continue seeking clarification on the arrangements for affected consumers, including the information they would need to lodge claims.
He added that consumers with unutilised memberships or prepaid packages with True Fitness or True Yoga could approach CASE for assistance.
"CASE is concerned about the impact of sudden business closures on consumers, particularly where consumers have paid upfront for long-term memberships or packages," he said.
Mr Yong encouraged consumers to exercise caution when making large upfront payments for services, and to consider shorter-term payment arrangements where possible before signing up for a package.
He added that CASE would continue to engage the government and industry on measures to strengthen consumer protection against prepayment losses.
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