The two companies passed special resolutions at extraordinary general meetings on Oct. 7, appointed liquidators RSM Singapore said in a recent media statement, according to The Straits Times.
Creditors have confirmed the liquidators’ appointment and voted to establish a Committee of Inspection with up to five members to represent stakeholder interests.
The liquidators will focus on the “orderly administration of the companies’ affairs” and recovering assets. They will consult the committee and other key stakeholders throughout the winding-up process.
True Yoga and True Fitness are part of the True Singapore Group, which also operated the TFX and Yoga Edition fitness and yoga centers in Singapore.
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A True Fitness gym in Singapore. Photo courtesy of True Fitness |
The group abruptly closed all seven outlets overnight on Sept. 10, informing employees by email just an hour before the shutdown took effect.
Many employees and members arrived at the gyms the next morning to find locked doors and repossession notices posted at the entrances.
On Sept. 11, the Consumers Association of Singapore said it had received hundreds of complaints from members, whose losses from unused memberships, packages and services exceeded SGD609,000 (US$476,000), according to Channel News Asia.
The True Singapore Group had faced growing financial pressure, posting substantial losses and net liabilities despite continuing to generate notable revenue, according to its Hong Kong-listed parent, Kontafarma China Holdings.
At the end of August, the group owed Kontafarma HKD309.7 million ($39.5 million).