tnp.sg
Members enraged by California Fitness' sudden closure
By NOOR ASHIKIN ABDUL RAHMAN,Pasakorn Konwohrachet
California Fitness shuts remaining outlets. Woman hit by double blow after buying $4,000 package says:
She parted with over $4,000 when she signed up for a gym membership with California Fitness on Jan 21.
Her hopes to frequent its Ngee Ann City branch to get in shape were dashed when the outlet shut just weeks later in February.
Ms Ervina Sugiarti, a permanent resident, claimed a clause in the contract prevented her from seeking a refund if there was another branch 10km away.
The 39-year-old, who is married with two daughters, said that as there were other branches in Bugis, Novena and Raffles Place back then, the fitness chain refused to refund her.
Instead, it let her change to the Novena Square branch. However, she did not continue to use her package as the location was not convenient.
The second blow came when she learnt that the chain's last two branches at Novena and Bugis had shut yesterday.
Ms Ervina could not recall the duration of her membership but said she had utilised only a handful of gym and personal training sessions before the outlet closed.
The beauty therapist, who earns $2,700 a month, told The New Paper in a telephone interview: "To me, the money is a big amount. I am not confident I can get it back. I feel it is unethical.
"No more memberships any more, least of all a gym membership. This incident has scared me off things like that."
TNP PHOTO: NOOR ASHIKIN ABDUL RAHMAN
LACKED FINANCES
In a media statement sent out at 12.03am yesterday by provisional liquidators from financial advisory company Ferrier Hodgson, it was revealed that JV Fitness - which owned and operated California Fitness outlets in Novena, Bugis and Raffles Place - lacked finances to keep them running.
The statement read: "JV Fitness does not have adequate liquid resources to continue its operations and therefore all outlets in Singapore will be closed from today until further notice."
The news came after the sudden closure of its Raffles Place branch last Saturday and all 12 Hong Kong branches earlier that week.
Members took to social media, including the chain's Facebook page, to express their anger and disbelief.
A Facebook page called "California gym claims" was set up with enraged members discussing their legal options in the wake of the closure. To date, it has over 900 members.
A Change.org petition, calling for the Ministry of Trade and Industry's assistance in getting refunds for members, was set up after the Orchard branch closed in February and now has more than 2,100 signees.
Mr Jeremy Au Yong, a private tutor, launched the petition in February to protest against California Fitness' "business practices" and express his worry about the chain's future.
The 40-year-old, who signed up for a four-year membership that cost him over $2,000 two years ago, said: "When its Orchard branch closed, I felt it was a sinking ship, a Titanic that has hit the iceberg. Now it is just deja vu and bad PR in the mix. It all boils down to lack of accountability and transparency."
Mr Au Yong, a member since 2010, blamed its "unsustainable business model".
"Based on my observations, there aren't many new sign-ups... always the same old faces. We are frequent customers who turn up pretty often, and you can't make us pay any more for extra classes and services. We are like cows that can't be milked any further."
$1,700 PACKAGE
Another member, who moved here from the US four months ago, signed up for a two-year package that cost him $1,700 in April.
He last went for a gym session at the Novena branch on Tuesdayand said all seemed fine.
He said that the staff had been "pushing for sales" from the start.
He said: "I am disappointed, and I want to know what my options are.
"We learnt of it only when our personal trainer contacted us at 3am. They should have told us of the situation up-front and kept us in the loop on their next move. Now there is no way to contact them."
When approached, other gym owners cited competition as a possible reason for the closure.
Mr Jim Lim, 48, director of Momentum Lab, said: "In Singapore, it is a small market. There are so many other fitness studios (that have specialities) like CrossFit, yoga and pilates.
"The industry has become smaller with more players in the market."
Ms Elinn S. Ahmad, 34, owner of E's Fitness, also pointed out that a downward-spiralling reputation due to the lack of upgraded equipment could be a reason.
"California Fitness is an old gym. Nowadays, people want new machines, new staff, new facilities," she said.
Members enraged by California Fitness' sudden closure
By NOOR ASHIKIN ABDUL RAHMAN,Pasakorn Konwohrachet
California Fitness shuts remaining outlets. Woman hit by double blow after buying $4,000 package says:
She parted with over $4,000 when she signed up for a gym membership with California Fitness on Jan 21.
Her hopes to frequent its Ngee Ann City branch to get in shape were dashed when the outlet shut just weeks later in February.
Ms Ervina Sugiarti, a permanent resident, claimed a clause in the contract prevented her from seeking a refund if there was another branch 10km away.
The 39-year-old, who is married with two daughters, said that as there were other branches in Bugis, Novena and Raffles Place back then, the fitness chain refused to refund her.
Instead, it let her change to the Novena Square branch. However, she did not continue to use her package as the location was not convenient.
The second blow came when she learnt that the chain's last two branches at Novena and Bugis had shut yesterday.
Ms Ervina could not recall the duration of her membership but said she had utilised only a handful of gym and personal training sessions before the outlet closed.
The beauty therapist, who earns $2,700 a month, told The New Paper in a telephone interview: "To me, the money is a big amount. I am not confident I can get it back. I feel it is unethical.
"No more memberships any more, least of all a gym membership. This incident has scared me off things like that."
TNP PHOTO: NOOR ASHIKIN ABDUL RAHMAN
LACKED FINANCES
In a media statement sent out at 12.03am yesterday by provisional liquidators from financial advisory company Ferrier Hodgson, it was revealed that JV Fitness - which owned and operated California Fitness outlets in Novena, Bugis and Raffles Place - lacked finances to keep them running.
The statement read: "JV Fitness does not have adequate liquid resources to continue its operations and therefore all outlets in Singapore will be closed from today until further notice."
The news came after the sudden closure of its Raffles Place branch last Saturday and all 12 Hong Kong branches earlier that week.
Members took to social media, including the chain's Facebook page, to express their anger and disbelief.
A Facebook page called "California gym claims" was set up with enraged members discussing their legal options in the wake of the closure. To date, it has over 900 members.
A Change.org petition, calling for the Ministry of Trade and Industry's assistance in getting refunds for members, was set up after the Orchard branch closed in February and now has more than 2,100 signees.
Mr Jeremy Au Yong, a private tutor, launched the petition in February to protest against California Fitness' "business practices" and express his worry about the chain's future.
The 40-year-old, who signed up for a four-year membership that cost him over $2,000 two years ago, said: "When its Orchard branch closed, I felt it was a sinking ship, a Titanic that has hit the iceberg. Now it is just deja vu and bad PR in the mix. It all boils down to lack of accountability and transparency."
Mr Au Yong, a member since 2010, blamed its "unsustainable business model".
"Based on my observations, there aren't many new sign-ups... always the same old faces. We are frequent customers who turn up pretty often, and you can't make us pay any more for extra classes and services. We are like cows that can't be milked any further."
$1,700 PACKAGE
Another member, who moved here from the US four months ago, signed up for a two-year package that cost him $1,700 in April.
He last went for a gym session at the Novena branch on Tuesdayand said all seemed fine.
He said that the staff had been "pushing for sales" from the start.
He said: "I am disappointed, and I want to know what my options are.
"We learnt of it only when our personal trainer contacted us at 3am. They should have told us of the situation up-front and kept us in the loop on their next move. Now there is no way to contact them."
When approached, other gym owners cited competition as a possible reason for the closure.
Mr Jim Lim, 48, director of Momentum Lab, said: "In Singapore, it is a small market. There are so many other fitness studios (that have specialities) like CrossFit, yoga and pilates.
"The industry has become smaller with more players in the market."
Ms Elinn S. Ahmad, 34, owner of E's Fitness, also pointed out that a downward-spiralling reputation due to the lack of upgraded equipment could be a reason.
"California Fitness is an old gym. Nowadays, people want new machines, new staff, new facilities," she said.
