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.” 

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