Signing up for packages at the gym is common these days. But what happens when the outlet you frequent closes down with no warning?
A high-intensity interval training (HIIT) fitness studio in Tanjong Pagar, Haus Athletics, abruptly shut its doors, leaving members uncertain whether they’ll receive refunds for unused lessons they already paid for.
Both of its studios at OUE and Cross Street Exchange ceased operations in April.
Source: Google Maps
Emails seen by MS News show that members first found out publicly about the OUE closure on 17 Apr, just two days before 19 Apr, when it ceased operations.
However, members are still in the dark about their future a month after the studios’ closures. The only thing they’d heard of was that a liquidation had taken place.
According to one member who declined to be named, the first email was sent to them on 17 Apr.
The email stated that, besides the closure of the OUE studio, there would be “upcoming pop-ups and events in the coming weeks”.
Image provided by anonymous Haus Athletics member
Two days later, on 19 Apr, more classes were reportedly added to the other studio at Cross Street Exchange (CS) in Chinatown.
But the second email was sent to members on 24 Apr, informing them that the CSE studio would cease operations from 26 Apr, just two days later.
“We understand that this announcement may be unexpected and may come as a shock, with such short notice,” the email read.
It also said that classes on 25 Apr will be closed and that it’ll reach out to members with active packages to discuss options, with a commitment to make the process “as smooth as seamless as possible”.
An ex-employee, Alex (not their real name), noted that the company’s founders set up a Zoom call and announced the closure at the same time the public received the emails.
However, the founders allegedly avoided answering further questions regarding the company’s next steps. The employees were also not told that the company had liquidated.
“The founders had always made it sound like we are taking a break, and there’s a possibility of reopening a studio elsewhere,” Alex said.
It wasn’t until 28 Apr, when an email was sent by a liquidation firm to creditors — which include main package holders — stating that the company was in liquidation, that employees found out.
Included in the document was a provisional list of creditors as of 28 Feb, as well as a date set for a creditors meeting on 9 May.
Apparently, the company owes more than S$1.7 million to its 268 creditors, although this amount might have changed since the email was sent.
Another member said they were unaware of their plans to liquidate until their friend, the main package holder, received the liquidators’ letter.
They have not made a police report as they await further follow-up from Haus and/or their liquidators about whether or not they will receive any refunds.
“We will decide on our next course of action once we receive definitive information on the refunds,” they said.
There haven’t been any further communications from Haus or the liquidators on the status of refunds (if any) since their last email on 28 Apr and the creditors meeting on 9 May, they added.
“We are deeply disappointed with the way Haus has been handling this because there was no indication that they were in any form of financial trouble and have not done anything to reassure us that they are doing their utmost to process our refunds.”
“Everything happened so suddenly, and we were not given any reaction time . . . we were really blindsided by all of this.”
Even though Haus Athletics has been liquidated, the social media accounts are still open, albeit not updated since 20 Apr.
However, MS News learned that on 13 May, a pop-up event was held by Rumours Beach Club in collaboration with Haus Athletics.
In response to queries, Rumours Beach Club said the instructors were engaged as individuals, stressing that no money was pocketed into Haus Lifestyle Pte Ltd.
MS News has also reached out to the Haus Athletic founders, but they have yet to respond.
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Featured image adapted from Google Maps.
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