SINGAPORE - Members of California Fitness received e-mails on Thursday (July 28) from liquidators Ferrier Hodgson stating that there are currently no funds available for refunds to members.
They were also sent a Proof of Debt form to file their claims with the liquidators for J.V. Fitness, the parent company of California Fitness.
California Fitness closed down its Republic Plaza branch on July 16, followed by its Novena and Bugis outlets on July 20, leaving members high and dry after having paid upfront thousands in membership fees.
Mr Tim Reid, a partner at Ferrier Hodgson, confirmed that there are no funds available currently to refund members, and said that they are gradually sending out the e-mails to the gym's 23,000 members.
However, this is prior to the possibility of selling off assets such as the gyms.
An advertisement placed by Ferrier Hodgson was spotted in The Business Times on Wednesday (July 27).
The advertisement stated that the liquidators are seeking expressions of interest from those who wish to purchase the gyms, collectively or individually, as turnkey operations.
The advertisement only mentioned the Raffles Place and Bugis outlets, and lists the facilities and equipment included such as cardio machines, studios, steam rooms and saunas. Registrations of interest have to be lodged with the liquidators by Aug 3.
A hearing before the High Court is set on Aug 12 where the provisional liquidators will report their findings to the High Court and the creditors upon completing their assessment.