True Fitness kept selling 5-year memberships, then put all its clubs into liquidation

On September 10, 2026, True Fitness and True Yoga — which with TFX and Yoga Edition make up the True Singapore Group of Hong Kong-listed parent Kontafarma China Holdings — were placed under provisional liquidation, and operations at all clubs ceased with immediate effect. Goh Wee Teck and Lin Yueh Hung of RSM SG Corporate Advisory were appointed provisional liquidators.

Members were stranded with prepaid plans. The Consumers Association of Singapore received 1,610 complaints linked to fitness closures between September 10 and 30 — 1,518 involving True Fitness and True Yoga, with about S$3.78 million in reported losses. Both businesses had been marketing multi-year memberships, some extending beyond five years, as recently as a few months before the closure.

Kontafarma's market announcement called the challenges unprecedented: competition from boutique gyms, fitness apps, online coaching and residences with in-house gyms, and liquidity pressure that persisted despite parent cash funding. The group recorded HK$181.2 million revenue and a HK$34.3 million loss for 2025; by August 31, 2026 it had net liabilities of HK$429.3 million and owed the wider group HK$309.7 million, with about S$2.3 million outstanding on a parent-guaranteed bank loan. Extraordinary general meetings on October 7 were to propose creditors' voluntary winding-up.

S$3.78M in member losses across 1,518 complaints; group net liabilities of HK$429.3M as of August 31, 2026.

The revenue model leaned on long-dated prepayments, so every additional month of sales deepened the refund debt owed to members.

Multi-year packages were still being sold months before the collapse, when net liabilities already stood at HK$429.3 million.

Competition from boutique gyms, fitness apps and home-gym residences eroded the big-box club model while fixed obligations stayed.

Parent funding could not close the gap: HK$309.7 million was already owed within the group on top of the member liabilities.

Advance payments are a loan from customers; selling five-year memberships while liabilities pile up turns a business failure into a consumer disaster.

CASE helped affected consumers lodge claims and proofs of debt with the liquidators, and is calling for mandatory safeguards — cooling-off periods, accreditation, wrongful-trading enforcement — for businesses taking large advance payments. Prepayment losses reported to CASE reached nearly S$6.7 million for January-September 2026, about 147% above the S$2.71 million reported for all of 2025.