Singapore customers face S$609K losses after True Fitness & True Yoga closures, including those who paid lifetime membership up to S$21K

Summary

• Consumers Association of Singapore (CASE) received 241 complaints by Sept 11, with consumers reporting more than S$609,000 in losses from unused memberships and packages.

• True Fitness and True Yoga entered provisional liquidation on Sept 10, closing 10 fitness and yoga outlets across Singapore.

• More than 50 employees gathered at the company’s headquarters after receiving late notices, with some owed wages, notice pay and commissions.

SINGAPORE: True Fitness and True Yoga have shut their Singapore operations, leaving customers facing more than S$609,000 in reported losses.

The Consumers Association of Singapore (CASE) said it received 241 complaints by Sept 11. The reported losses involve unused memberships, packages and services.

The two companies had entered provisional liquidation after their directors said they couldn’t continue due to their liabilities. The closure came as a shock to both customers and employees.

More than 50 employees gathered at the group’s Claymore Hill headquarters on Sept 11. Staff from RSM SG Corporate Advisory, the appointed insolvency practitioner, were also present.

Employees were told to sign termination notices with immediate effect. They were also given information on how to submit claims for unpaid wages.

Project executive Arivinthan Rajanthran, 33, said he was owed about 10 days’ salary and his notice-period pay.

Senior personal trainer Mani Jr, 28, said staff first received messages after 10 pm on Sept 10 telling them to return to the gyms and collect their belongings.

Another message arrived in the early hours, informing employees about the liquidation. For workers who had built careers and lives around the company, the timing made the closure especially difficult.

Team lead Adrian Pratab, 43, had worked at True Fitness for more than a decade. The Malaysian work pass holder said he would have made plans for another job earlier if staff had been told about the closure sooner.

Employees were still working while the business was preparing to close

Some workers said there had been little indication that the business was about to shut.

Mr Mani said trainers had been asked about a month earlier to stop selling packages to new customers. Staff were told this was linked to changes in the pay structure.

Moving plans also appeared to be continuing. The Great World outlet was expected to move to Funan, according to Mani. This made the sudden shutdown harder for employees to understand.

Mr Mani also said trainers were owed commissions ranging from S$90 to S$120 per session, in addition to their salaries for work completed in September. His immediate concern was also for customers who still had unused personal training sessions and colleagues working in Singapore on work passes.

The closure affects more than a monthly pay cheque. Some employees had families, financial commitments and years of work tied to the company.

Customers paid thousands of dollars for memberships and unused services

Members were left facing their own financial losses. One customer, identified as Irene C, 40, told Channel NewsAsia (CNA) in a Sept 11 report that she paid more than S$6,000 for a lifetime membership eight years ago. The membership gave her access to True Fitness clubs across Asia.

Ms Irene had initially expected to continue using the gyms at other outlets after being told that the Great World outlet would close due to lease-related matters.

Accountant Rita Carolina, 45, had a three-year Yoga Edition membership approaching its November expiry. She had also recently paid more than S$1,000 for 50 Pilates sessions and had used only about half of them.

Retiree Eddy Koh, 65, paid S$2,640 upfront in June for a two-year membership with another year of complimentary access. He said the company’s long history had made him feel confident about paying upfront.

Other members reported even larger sums. One customer, Mr Chen, had spent more than S$21,000 in 2014 on “Lifetime Founder VIP” memberships for himself and his two daughters.

The memberships carried an annual fee of S$107 and included access to overseas branches, Lianhe Zaobao reported (Sept 12). Another customer, Ms Lin, 44, said she paid about S$10,000 for a lifetime VIP membership in 2020.

Some affected members have since created group chats to share information and help one another pursue their claims.

Singaporean actress Chen Xiuhuan also spoke about the closure on Instagram. She had been a member since 2017 and said she had worked out there almost three times a week.

Ms Chen had recently completed 24 personal training sessions and was considering another package before the shutdown. She hadn’t paid for the new package, narrowly avoiding another financial commitment just days before the closure.

Heavy financial losses and rising liabilities placed the business under pressure

True Group operated 10 fitness and yoga outlets in Singapore under True Fitness, TFX and Yoga Edition. Its parent company, Hong Kong-listed Kontafarma China Holdings, said the Singapore business faced intense competition from boutique gyms, residential fitness facilities and online training services.

The company also faced high operating costs and pressure to attract customers. The Singapore group recorded revenue of about HK$181.2 million and a loss of HK$34.3 million for the year ended Dec 31, 2025.

The company’s liabilities stood at about HK$555.5 million at the end of that year. The situation worsened this year. For the first eight months of 2026, the business recorded revenue of about HK$118.4 million and a loss of HK$19.1 million.

As of Aug 31, its liabilities had reached about HK$633.8 million, against assets of about HK$204.5 million. This left net liabilities of about HK$429.3 million.

Kontafarma also said the Singapore group owed its parent about HK$309.7 million as of Aug 31. The company said liquidation would allow it to focus resources on its pharmaceutical business.

Refunds may depend on what liquidators recover

The provisional liquidators now control the affairs, business and property of True Fitness and True Yoga. The companies’ directors no longer have control over those matters.

An extraordinary general meeting is scheduled for Oct 7, at which a creditors’ voluntary winding-up will be proposed. Meetings with creditors will follow.

Kontafarma said recovery for creditors will depend on assets realised during liquidation and the legal order for distributing those funds.

Customers who paid upfront may have to wait while claims are assessed and assets are distributed.

CASE president Melvin Yong said the consumer watchdog had contacted the provisional liquidator and was seeking information about the claims process.

Consumers with unused memberships or prepaid packages can approach CASE for assistance.

CASE has also urged consumers to think carefully before making large upfront payments for long-term services. Shorter payment arrangements can limit losses if a business closes unexpectedly.

A familiar name isn’t the same as a guaranteed claim

True Fitness had operated in Singapore since 2004. Its wider group had already withdrawn from Malaysia and Thailand in 2017 and Taiwan in 2025.

The group also faced a Singapore High Court case over the handling of its closures in Malaysia and Thailand.

In 2022, the High Court ruled in favour of True Fitness and True Yoga in their lawsuit against founder and former CEO Patrick John Wee Ewe Seng.

The judge found that Wee had allowed long-term memberships to be sold while knowing those businesses faced impending closure.

Such company history adds another layer to the latest shutdown, although the current liquidation involves the Singapore operations and their present financial position.

For customers, the practical lesson is that paying upfront may save money when everything goes well, but it also places more money at risk when a company fails.

A gym membership should help people stay fit, not leave them wondering whether their money has disappeared.

Consumers need useful choices before they sign long contracts, while businesses need to be upfront when their ability to deliver those promises is in doubt.