True Fitness and True Yoga Face Liquidation Amidst Credit Claims

Liquidation Process Underway

In Singapore, the fitness chains True Fitness and True Yoga are navigating a challenging landscape as their appointed liquidators report that over 3,300 creditors have submitted claims after the companies entered creditors' voluntary liquidation.

Details of the Liquidation

This significant decision was formalized during extraordinary general meetings held on October 7, where special resolutions were passed. These meetings endorsed the liquidators, RSM Singapore, and established a Committee of Inspection (COI) composed of up to five members. This committee is tasked with representing the interests of all stakeholders involved.

Next Steps for Liquidators

The primary focus for the liquidators now shifts towards the structured administration of the companies’ matters alongside asset recovery. They will work closely with the COI, engaging in consultations with key stakeholders to ensure a smooth winding-up process.

Claims Submission for Creditors

All affected creditors including members, staff, and vendors are encouraged to either file new claims or revise existing ones through the RSM creditors’ claims portal. For direct communication, liquidators have provided specific email addresses for different groups:

• True Fitness Members: [email protected]
• True Yoga Members: [email protected]
• True Fitness Vendors and Other Creditors: [email protected]
• True Yoga Employees, Vendors and Other Creditors: [email protected]

A Sudden Closure

The liquidation follows a sudden closure of all seven outlets operated by the True Singapore Group, which includes both True Fitness and True Yoga. Employees received an abrupt email notification just an hour before the shutdown took effect on September 10. Many were taken by surprise as they arrived the following day to locked doors and notices announcing the repossession of property.

Consumer Response and Financial Background

The Consumers Association of Singapore reported a significant influx of complaints following the closures, with losses exceeding S$609,000 attributed to unused memberships and pending services. The True Singapore Group has been struggling with severe financial issues, despite generating substantial revenue. Their parent company, Kontafarma China Holdings, revealed a staggering debt of HK$309.7 million (approximately S$50.6 million) as of late August.

As the situation unfolds, stakeholders remain hopeful for an equitable resolution amidst the turbulence facing True Fitness and True Yoga.