True Fitness and True Yoga have ceased operations in Singapore, leaving employees facing an abrupt closure and questions over the lack of company representatives during the shutdown.
The two wellness chains, operated by the True Singapore Group, were placed under provisional liquidation on 10 September after the directors of True Fitness Pte. Ltd. and True Yoga Pte. Ltd. declared that the businesses were unable to continue operating due to their liabilities.
Their Hong Kong-listed parent, Kontafarma China Holdings Limited, said the directors appointed Goh Wee Teck and Lin Yueh Hung of RSM SG Corporate Advisory as provisional liquidators. Creditors’ voluntary winding-up (CVL) resolutions are scheduled to be proposed at extraordinary general meetings on 7 October 2026.
Employees were reportedly met by representatives of the appointed insolvency practitioner rather than management or HR staff. Adrian Pratab, a team lead for instructors at True Fitness' Millennia Walk outlet, told Channel NewsAsia that he was disappointed that HR representatives were not present to answer employees’ questions.
The closure affects businesses operating under the True Fitness, Yoga Edition and TFX brands in Singapore.
Competition and liquidity pressures
Kontafarma said the Singapore fitness business had become increasingly challenging, citing fierce market competition and rising costs associated with attracting customers.
The company pointed to the growing popularity of boutique gyms, as well as gyms provided within condominiums and residential developments, which it said had reduced demand for external gym memberships.
Competition has also expanded beyond traditional fitness centres, with online training, mobile applications, video platforms and virtual coaching giving consumers more options to exercise from home or outdoors.
“Fitness businesses are no longer competing with physical gyms in their local neighbourhoods,” Kontafarma said in its announcement, noting that operators are also competing with relatively inexpensive digital alternatives.
The group said these pressures, alongside high operating costs and stringent cash flow conditions, made it extremely difficult for the Singapore fitness business to continue despite efforts to control costs and improve operational efficiency.
Kontafarma had previously provided cash funding to support the Singapore business, but said it continued to underperform and face significant liquidity pressure.
The financial position of the Singapore operations had deteriorated significantly. For the year ended 31 December 2025, the True Singapore Group recorded revenue of about HK$181.2 million and a loss of HK$34.3 million. Its total liabilities stood at approximately HK$555.5 million against assets of HK$149.7 million, resulting in net liabilities of about HK$405.8 million.
For the eight months ended 31 August 2026, the group recorded revenue of approximately HK$118.4 million and a loss of HK$19.1 million. Its liabilities had risen to around HK$633.8 million, compared with assets of HK$204.5 million, leaving net liabilities of approximately HK$429.3 million.
Around 230 workers seek support
The shutdown has also raised concerns around employee support and unpaid wages and commissions.
The Singapore Fitness Alliance said around 230 employees and freelancers from the True Group had sought its assistance.
The alliance is helping affected workers find new employment but said it would not be involved in recovering unpaid salaries or commissions.
While True Fitness and True Yoga are non-unionised, some affected workers are members of the Singapore Manual & Mercantile Workers’ Union (SMMWU), an affiliate of the National Trades Union Congress.
The union has called on the companies to work with it to support affected members. It is also organising a job-matching session with NTUC’s Employment and Employability Institute and the National Instructors and Coaches Association.
Eligible workers who have been involuntarily unemployed may also apply for Singapore’s SkillsFuture Jobseeker Support scheme, which provides temporary financial support of up to S$6,000 over six months.
Parent company to exit Singapore fitness business
The liquidation marks another retreat by the True Group from its international fitness operations. The group previously exited Malaysia and Thailand in 2017 and Taiwan in 2025.
Kontafarma said the liquidation would allow the Singapore businesses to undergo a structured, creditor-supervised process under Singapore’s Insolvency, Restructuring and Dissolution Act 2018.
Once the provisional liquidation takes effect, the provisional liquidators assume control of the companies’ affairs, businesses and properties, while the powers of the directors cease.
The parent company expects to record an impairment loss of approximately HK$76.9 million on intangible assets linked to the Singapore fitness business. As of 31 August 2026, the True Singapore Group owed the wider group approximately HK$309.7 million, although the final amount will be determined through the liquidation process.
Kontafarma also said True Fitness owed an independent bank approximately S$2.3 million under a guaranteed loan.
The parent company has increasingly focused on its pharmaceutical business, which accounted for approximately 76.7% of its total revenue in the first half of 2026. It said the liquidation of the Singapore fitness operations is not expected to have any other material adverse impact on the group's existing business.