Liquidator urges California Fitness Singapore members to be patient

[yuiyoshida]

SINGAPORE: The liquidator for California Fitness said on Thursday (Jul 21) that it made the decision to close the gym chain's outlets in Singapore as the operator had significantly less cash than expected.

California Fitness' Raffles Place branch closed abruptly on Jul 16 and its remaining two branches in Bugis and Novena were shuttered as well on Jul 20.

In a media statement on Thursday, Ferrier Hodgson partner Tim Reid said: "The company is facing a shortage of cash, that is why we made the decision to close the gyms. We had anticipated that when we were appointed there would have been significantly more cash that would have enabled us to continue operations while we sought to identify a purchaser."

He added that salaries for California Fitness staff had been paid just before Ferrier Hodgson were appointed, saying that "this has greatly reduced the cash available".

Mr Reid said that as provisional liquidators of California Fitness, its immediate step has been to meet with the landlords of the operator's three outlets. Said Mr Reid: "We hope to have some agreement with the landlords whereby we can market the gyms for sale at the current premises.

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http://www.channelnewsasia.com/news/singapore/liquidator-urges/2975932.html