California Fitness liquidators looking to sell off gyms, asking members to be patient

The California Fitness outlet in Velocity with its shutters down on July 20, 2016.
The California Fitness outlet in Velocity with its shutters down on July 20, 2016. ST PHOTO: AZMI ATHNI

SINGAPORE - Recovery firm Ferrier Hodgson, the provisional liquidators for California Fitness, released a statement on Thursday (July 21) asking members of the now-closed gym chain to be "patient" while it addressed their concerns.

California Fitness members are seeking refunds for thousands of dollars worth of gym packages following the abrupt closure of its Novena and Bugis branches here on Wednesday (July 20). The club's Republic Plaza outlet closed last Saturday (July 16) until further notice.

Mr Tim Reid, a partner at Ferrier Hodgson, said the firm had met the landlords of the gym's premises at the three locations and is hoping to sell California Fitness' gyms there.

He added that a purchaser acceptable to the landlords would first need to be identified, and an agreement would have to be reached between Ferrier Hodgson, the gyms' landlords and prospective purchasers.

"We may also need the approval of the Court," he said.

Mr Reid reiterated that "our role is to achieve the best outcome for creditors of the company".

"As such, our efforts are in line with the concerns of members," he said, adding that updates would soon be available online for California Fitness members.