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Members left hanging dry after closure of True Fitness

True Group’s Malaysia closure affects 71 employees

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With the closure of True Fitness and True Spa in Malaysia effective 10 June 2017, a total of 71 staff members have been affected, comprising the main office, three True Fitness centres, and one True Spa centre, per a statement to Human Resources.

In an announcement on its website, the fitness firm has noted that the past few years have proved challenging, adding that “unfortunately the businesses are no longer financially viable due to evolving market conditions.”

True Group’s spokesperson clarified to Human Resources that several attempts to rejuvenate the businesses were made, however the company has “not been able to get sufficient flexibility from our landlords and creditors to enable us to restructure the businesses in time.”

The spokesperson added: “The business decision by our creditors to shut us down left us with no option but to close down our operations on short notice.”

On the topic of providing outplacement support, the spokesperson explained that True Group is speaking with certain gyms on the possibility of providing some job placements for some staff. However, detailed information on this is not available as yet.

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In a report dated 13 June by The Star Online, a True Group spokesperson has said that all outstanding salaries and commission for staff will be released on 19 June.

Human Resources has reached out to True Group for details on the matter.

As for members of the fitness centre, True Fitness states it has purchased memberships for members to redeem and personal training sessions to be utilised at Chi Fitness, effective 3 July 2017.

However, a statement on Chi Fitness’ website clarifies it has no contract or arrangement to honour or takeover any commitment from True Fitness. It adds: “True Fitness has approached Chi Fitness to purchase 2,000 monthly passes to Chi gyms in Klang valley (except Nexus and Bangsar Shopping Center branches) to be passed on to their members. As of now, we have not finalised the sale.”

For members of True Spa, True Group is still searching for a service provider for unutilised sessions.

Photo / 123RF



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