True Fitness, True Yoga to close in Singapore amid liquidation

True Fitness and True Yoga Shutter 10 Singapore Outlets

The abrupt shutdown affects members of True Fitness, TFX, and Yoga Edition clubs, leaving many visitors arriving in athletic attire unaware of the winding-up process. According to True Fitness’ website, there are three clubs in Singapore – at Djitsun Mall in Ang Mo Kio, Velocity@Novena Square, and Income@Tampines Junction, while the branch on the third storey of Great World City is not listed on the website.

Accounting and Corporate Regulatory Authority’s BizFile records as at Sept 11 lists both True Fitness’ and True Yoga’s statuses as in liquidation – creditors voluntary winding up. Hong Kong-listed parent firm Kontafarma China Holdings announced that provisional liquidators have been appointed, with extraordinary general meetings and creditors’ meetings scheduled in October. The directors of True Fitness and True Yoga have appointed Goh Wee Teck and Lin Yueh Hung from RSM SG Corporate Advisory as provisional liquidators.

Mounting Financial Strain and Deepening Losses

The collapse follows years of severe financial distress for the True Singapore Group. The True Singapore Group recorded revenue of about HK$181.2 million (US$23.1 million) and a loss of about HK$34.3 million for the year ended Dec 31, 2025. At the end of 2025, it had total assets of about HK$149.7 million and liabilities of about HK$555.5 million, leaving the True Singapore group with net liabilities of about HK$405.8 million.

True Singapore Group Reports Net Liabilities Exceeding HK$400 Million

Unaudited management accounts showed that the business recorded revenue of about HK$118.4 million and a loss of HK$19.1 million (US$2.4 million) in the first eight months of this year ended Aug 31, 2026. As of Aug 31, its assets stood at about HK$204.5 million, with total liabilities of about HK$633.8 million, leaving it with net liabilities of about HK$429.3 million.

Intensifying Competition from Boutique Gyms and Digital Fitness

Kontafarma said the fitness business of the group in Singapore faces multiple challenges, including but not limited to the increasingly fierce market competition and rising costs in attracting customers. Despite cash funding from the parent company, the Singapore operations continued to underperform and faced significant liquidity pressure. In an earlier profit warning issued on Aug 17, Kontafarma China Holdings noted that it has provided cash funding and financial support to True Singapore in hopes of easing its significant liquidity pressure. Kontafarma said the challenges faced by the True Singapore Group are “unprecedented”.

It said the growing popularity of boutique gyms had intensified competition, while gyms in condominiums and residential developments have also reduced some consumers’ need for external gym memberships. The company also noted competition from online training, mobile apps, video platforms and virtual coaching, which allow people to exercise at home or outdoors. These made it difficult to attract customers, alongside high operating costs and tight cash flow, Kontafarma said. While the best endeavours have been made to control costs and optimise operational efficiency of the fitness business in Singapore, the fitness business is found extremely difficult to continue amid the fiercely challenging market, it added.

Creditor Meetings and Landmark Branch Closures

In an email to True employees on Thursday night and seen by The Business Times, the company’s human resources department said that provisional liquidators have already been appointed. All staff were asked to report to the company’s office at Claymore Hill on Friday afternoon, where the liquidators will explain the next steps. All the outlets have also ceased operations with immediate effect, the email said. Notices have been placed outside the branches to inform members of this sudden development. Once the appointment of the provisional liquidators takes effect, they will assume control of the affairs, businesses and property of True Fitness and True Yoga, said Kontafarma, adding that the powers of the companies’ directors will cease. The operation of the fitness and yoga centres is expected to cease in connection with the commencement of the provisional liquidation, it said. The creditors’ voluntary liquidation will commence after the passing of the special resolution at the extraordinary general meeting.

True Fitness Owes Kontafarma Group About HK$309.7 Million

True Singapore Group also owed its parent Kontafarma group about HK$309.7 million as of Aug 31. “The final amount of such indebtedness is subject to adjudication by the liquidators, and recovery will depend on the assets realised in the liquidation and the distribution of such realisations to creditors in accordance with the statutory order of priority under applicable laws and regulations of Singapore,” said Kontafarma. Kontafarma has also provided a guarantee to a bank for a loan to True Fitness. As of the date of this announcement, the total sum due by True Fitness to the bank amounted to about S$2.3 million.

Strategic Retreat and Pharmaceutical Focus

Kontafarma said the liquidation of the companies would allow the company to deploy its resources in a more optimal way for the development of the pharmaceutical business of the group. The company said that the True Singapore Group has been under mounting financial strain, recording substantial losses and net liabilities exceeding HK$400 million, even as it continued to generate revenue. With the group’s Singapore fitness business facing increasingly challenging conditions after the cessation of the Taiwan franchise operations, the liquidation underscores the company’s retreat from its regional fitness footprint and signals a restructuring that may reduce ongoing losses but also curtail future revenue and presence in the competitive fitness market. Kontafarma said it believes the liquidation would have no other material adverse impact on the financial performance and operations of its existing businesses.