True Fitness, True Yoga to close in Singapore; parent company cites competition, rising costs

True Fitness, True Yoga to close in Singapore; parent company cites competition, rising costs Despite cash funding from the parent company, the Singapore operations continued to underperform, said its parent company. SINGAPORE: True Fitness and True Yoga in Singapore are set to close, with their Hong Kong parent company citing "fierce" market competition and rising costs in attracting customers. According to a bourse listing by parent company Kontafarma China Holdings on Thursday night (Sep 10), the directors of True Fitness and True Yoga passed resolutions saying that they were unable to continue business due to their liabilities. Insolvency practitioners Goh Wee Teck and Lin Yueh Hung of RSM SG Corporate Advisory have been provisionally appointed. Extraordinary general meetings for both companies will be held on Oct 7, where creditors' voluntary winding-up will be proposed. Meetings with creditors will follow. The companies, collectively referred to by Kontafarma as the True Singapore Group, operate 10 fitness and yoga outlets in Singapore across three brands – True Fitness, TFX and Yoga Edition. The fitness and yoga centres are set to close as part of the liquidation process. MOUNTING LOSSES 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. Unaudited management accounts showed that the business recorded revenue of about HK$118.4 million and a loss of HK$19.1 million in the first eight months of this year. 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. 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. 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. 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". OPERATIONS EXPECTED TO CEASE 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 commen ce after the passing of the special resolution at the extraordinary general meeting. 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. Kontafarma said it believes the liquidation would have "no other material adverse impact" on the financial performance and operations of its existing businesses. Kontafarma's pharmaceutical segment accounted for about 76.7 per cent of group revenue in the first half of 2026 and 78.5 per cent of its total assets as of Jun 30. CNA has contacted the Consumers Association of Singapore and the Ministry of Manpower for more information.