On September 10, True Fitness and True Yoga closed every club they ran in Singapore, with no notice to members. By the evening of September 11, the Consumers Association of Singapore had logged 241 complaints, and members were reporting more than S$609,000 in unused memberships, packages and services.
The parent, Hong Kong-listed Kontafarma China Holdings, put both businesses into creditors' voluntary winding up. It reported net liabilities of HK$429.3 million as of August 31, on 2025 revenue of HK$181.2 million and a HK$34.3 million loss. Sister brands TFX and Yoga Edition stopped trading too. The reason given was "increasingly fierce market competition and rising costs in attracting customers," from boutique studios, condo gyms and online fitness.
The same week, the industry published its best numbers in years. The 2026 HFA Global Report, released September 14, found median operator revenue grew 10.7% in 2025 at a median EBITDA margin of 22.1%, and 92.3% of the 244 operators surveyed expect revenue to rise again this year. Both things are true. A median describes the middle of the table. Prepaid money gets stranded at the bottom of it.
What happened to True Fitness members' prepaid packages?
They became claims against a company in liquidation. Provisional liquidators from RSM SG Corporate Advisory have been appointed, creditors meet on October 7, and the consumer association is collecting claims for unused memberships and packages. In most liquidations, customers holding prepaid balances rank as unsecured creditors, a group that tends to recover little. For members, the money they paid in advance is now a line in a creditors' list rather than classes on a calendar.
Why a prepaid package is a debt on your books
When a member buys a 20-class pack or a year upfront, the cash arrives on day one. The service does not. Accountants record that balance as deferred revenue (cash collected for sessions you have not delivered yet, carried as a liability). Until the member books the class, you owe it to them.
That is easy to forget, because the cash makes for a good month. The strain arrives later, when those classes get used and no new money comes with them. A business that needs this month's package sales to cover last month's package obligations is running on its members' money. Former members have described repeated package pitches in the months before the closure. That is their recollection and has not been established. Members everywhere will still watch for the same pattern.
Until the member books the class, the money is theirs. You are holding it.
The Run RateHow rival gyms went after True Fitness members
Within days, competitors launched offers aimed at displaced members. They fall into two groups.
| Operator | Offer to True Group members | What it asks of a member who just lost money |
|---|---|---|
| Anytime Fitness (several branches) | First month's fee waived, plans from S$99 a month | Sign up and pay again |
| REVL Training, NOVA Training | Free trial classes | Try it, then buy again |
| Muay Champ Fitness | Two weeks of free coaching plus a one-to-one credit match | Some lost value restored |
| Body Fit Training (Loyang, One North, Bugis) | Matches unused credits | Some lost value restored |
A waived first month asks a burned member to trust a new operator with fresh money. A credit match acknowledges what they lost. Anytime Fitness had the reach, with more than 163 clubs on the island and a regional business we covered last month as it weighs a sale. The smaller operators had the more persuasive offer.
What it means for your gym or studio
You do not need to be near trouble for this to reach you. Members who have never heard of True Fitness will still ask the question it raises: what happens to my credits if you close?
Know your number. Add up every unused session, pack and prepaid month at the price paid. That is what you owe members today. Few operators have calculated it, and it is the first figure a lender, a buyer or a nervous member would ask about.
Match package length to real usage. A 12-month pack most members finish in five months holds a year of liability for five months of service. Shorter packs, and expiry terms that reflect how members actually book (where local consumer law allows), shrink the balance without killing the sale.
Keep package pushes out of cash planning. If a big package promotion is what covers payroll, the monthly model needs fixing, and a larger balance of owed sessions makes that harder. When member growth stalls, revenue per member is the lever, and it is a healthier one than cash in advance.
Put your credit policy in writing. One plain sentence on your site about how prepaid credits are handled costs nothing and answers the question before a member has to ask it.
The HFA report and Xplor's survey, where 74% of operators grew, describe an industry doing well on average. Members do not buy the average. They buy one operator, and increasingly they pay that operator in advance.