California Fitness closure: Failures of management, auditors blamed in report

The California Fitness branch at Velocity@Novena Square in 2016. The gym chain's abrupt closure in Singapore that year left thousands of members more than $20 million out of pocket.
The California Fitness branch at Velocity@Novena Square in 2016. The gym chain's abrupt closure in Singapore that year left thousands of members more than $20 million out of pocket.ST FILE PHOTO

Business allowed to be funded by gym members despite heavy debts: Liquidators

Nearly three years after the abrupt closure of gym chain California Fitness left thousands of members here more than $20 million out of pocket, liquidators for its parent firm JV Fitness have closed the door on them getting their money back.

In a detailed report to creditors seen by The Straits Times, liquidators from Ferrier Hodgson blamed JV Fitness' management and auditors for allowing gym members to fund the business for three years even though it was already heavily in debt.

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A version of this article appeared in the print edition of The Straits Times on April 10, 2019, with the headline 'Failures of management, auditors blamed in report'. Print Edition | Subscribe