Kontafarma liquidates Singapore True Fitness units after HK$19.1m loss
Hong Kong-listed Kontafarma China Holdings began winding up its True Fitness and True Yoga subsidiaries today, citing fierce competition and liquidity issues. All 10 Singapore outlets have ceased operations.
Singapore True Fitness Units Enter Liquidation
Kontafarma China Holdings has initiated provisional liquidation for its Singapore-based fitness brands, True Fitness and True Yoga. The move, announced today, follows the immediate closure of all 10 True Fitness, TFX, and Yoga Edition outlets across Singapore.
Provisional liquidators Goh Wee Teck and Lin Yueh Hung from RSM SG Corporate Advisory have been appointed to oversee the winding-up process for the subsidiaries. The company's human resources department informed employees of the closures yesterday evening, with approximately 100 staff meeting management today.
Financial Losses and Liabilities Mount
Hong Kong-listed Kontafarma reported significant financial challenges in its Singapore operations. For the eight months ending August 31, 2026, the group recorded a loss of HK$19.1 million (US$2.4 million) from its fitness business in Singapore. Total liabilities for the same period stood at HK$429.3 million.
This builds on a challenging prior year, where the group posted a loss of HK$34.3 million for the financial year ended December 31, 2025, with net liabilities reaching HK$405.8 million.
Competition and Costs Cited as Key Factors
Kontafarma attributed the liquidation decision to intense market competition and escalating customer acquisition costs within Singapore's fitness sector. The company noted underperformance and significant liquidity pressures despite earlier cash injections aimed at supporting the local business.
The rise of alternative fitness platforms, including boutique gyms, residential facilities, and online training, also presented obstacles to attracting and retaining customers, adding to operational costs. As of late 2025, Kontafarma's Singapore fitness business employed 257 individuals, a slight decrease from 281 in 2024.
The sudden closure leaves many True Fitness and True Yoga members unaware, with some having recently paid membership fees. Landlords have already begun repossessing units, such as Novena Square Development reclaiming a gym unit on Wednesday night. Creditors' voluntary winding-up will be proposed at extraordinary general meetings for True Fitness and True Yoga on October 7.
This event highlights the pressures on traditional gym chains in Singapore, as smaller, specialised studios and digital offerings continue to reshape consumer preferences and operational viability in the competitive fitness industry.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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