True Fitness and True Yoga prepare to close 10 centres in Singapore
The True Fitness and True Yoga chains in Singapore are preparing to cease operations as part of a liquidation process. Parent company Kontafarma China Holdings cited intense market competition and rising customer acquisition costs among the reasons, Channel NewsAsia reports.
Company liquidation
According to Kontafarma’s stock exchange filing, the boards of directors of True Fitness and True Yoga decided that the companies could not continue operating because of their liabilities. Insolvency practitioners Goh Wee Teck and Lin Yueh Hung of RSM SG Corporate Advisory were appointed on an interim basis to handle the matter.
Extraordinary general meetings of both companies are scheduled for October 7, where a proposal for creditors’ voluntary liquidation will be considered. Meetings with creditors are to take place afterward. Once the appointment of interim liquidators takes effect, they will control the companies’ affairs, business and property, while the directors’ powers will cease.
True Singapore Group, which Kontafarma includes these companies in, operates 10 fitness and yoga centres in Singapore under the True Fitness, TFX and Yoga Edition brands. The centres are expected to cease operations following the start of interim liquidation.
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Losses and liabilities
For the year ended December 31, 2025, True Singapore Group generated revenue of around HK$181.2 million and recorded a loss of approximately HK$34.3 million. At the end of 2025, the group’s assets stood at around HK$149.7 million, while liabilities amounted to approximately HK$555.5 million.
According to unaudited management accounts, revenue in the first eight months of 2026 amounted to around HK$118.4 million, while the loss was HK$19.1 million. As of August 31, assets were valued at HK$204.5 million, liabilities at HK$633.8 million, and net liabilities at HK$429.3 million.
Reasons for closure
Kontafarma said funding from the parent company had not helped the Singapore business overcome weak results and significant liquidity pressure. The company linked the situation to the growing popularity of small specialised gyms, the availability of gyms in condominiums and residential complexes, as well as competition from online workouts, mobile applications, video platforms and virtual coaching.
As of August 31, True Singapore Group also owed the Kontafarma group around HK$309.7 million. Separately, Kontafarma provided a bank guarantee for a True Fitness loan: as of the announcement date, the amount payable to the bank was approximately S$2.3 million.
