True Fitness says all ex-staff in Malaysia, Thailand will be paid

A company spokesperson told HRM Asia that "some issues" had caused delays in payroll processing.

True Fitness has confirmed to HRM Asia that it does owe staff in Malaysia and Thailand at least a month of salary, following a recent report that it had failed to pay employees for their final months' work after it abruptly ceased operations in both countries last week (June 9).

Responding to questions from HRM Asia, the fitness chain said that “all staff will be paid their salaries by this week/ early next week”.

A company spokesperson explained that “some issues” had caused its accounts to be held back since the announcement of the closures.

“However, that has been resolved and salaries to all staff have been sent and will be released this week,” she added.

The spokesperson further clarified that staff would have been informed about the closure by their respective department heads.

Last week, True Fitness closed all outlet In Thailand and Malaysia with immediate effect.

With regards to Thailand, the company explained that “the past years have proved challenging, and unfortunately the business are no longer financially viable due to evolving market conditions.

“It has been a challenging market ever since the social upheaval with the flooding and military interventions. The local consumer market is still struggling.”

It attributed the deteriorating Malaysian economy for its exit from the market.

It said high consumer debts have forced many Malaysians to prioritise living expenses over fitness, and this had contributed majorly to the business' failure.

But the gym operator added that it had made several attempts to rejuvenate the businesses.

But we have not been able to get sufficient flexibility from our landlords and creditors to enable us to restructure the businesses in time and the business decision by our creditors to shut us down left us with no option but to close down our operations on short notice.” 

Click here for more HRM News
German union secures 28-hour work week
Kelvin Ong - 19 Feb 2018
This is down from the previous minimum weekly requirement of 35 working hours.
Clear career progression top motivator of Asia's job hunters
HRM Asia - 16 Feb 2018
Most respondents in a new web poll say an identifiable career path is more important to them than salary and benefits.
People moves at PropertyGuru, AppNexus, and more
HRM Asia - 15 Feb 2018
Here are this week's latest HR appointments from across the region.
Five leadership principles to inspire your employees
HRM Asia - 14 Feb 2018
Look no further than your own hand to lead and inspire others to follow suit.
New digital hub to support small and medium businesses
HRM Asia - 14 Feb 2018
Cloud transformation in this region will receive a boost with the launch of the new centre in Singapore.
DBS teams up with Singapore university to launch new course
Kelvin Ong - 13 Feb 2018
The bank is partnering with Nanyang Technological University to launch a new wealth management programme.