Friday, June 9, 2017

A Company in Crisis - True Fitness

True Fitness ceases operations in Thailand, but the company assures Singaporeans that it will be business as usual in Singapore.

true fitness singapore crisis
Scene from True Fitness Thailand
If there is ever a company at the brink of a crisis, it is True Fitness. Unless the company can act fast to reassure its Singapore customers, creditors, vendors and employees, a run on the company appears inevitable. In its current weak financial health, any loss of confidence - and loss of income - will force it to close.

So far, it appears that True Fitness has not taken this concern seriously. Apart from a brief statement to the media, True Fitness does not appear to be making any efforts to assure its Singapore stakeholders. Their Singapore Facebook page makes no mention of the closure in Thailand and there are no messages of reassurance.

If True Fitness thinks that ignoring the issue is the best approach they are wrong. Social media has started to "talk" and friends are advising friends to cut their losses. Momentum has started to build and will, unless measures are taken to mitigate it, result in a run on True Fitness.

In the era of social media, nothing can be hidden. Personal accounts of how True Fitness actively collected outstanding payments from customers in the days leading to the closure paints a narrative of how the company "cheated" its Thai clients. This is further aggravated by more personal accounts of how True Fitness is not helping their Thai customers recover personal items left in the lockers of the now shuttered premises.

True Fitness needs to get ahead of the story and start shaping it in its favor. Singaporeans are already making references to the similarity between this and the 2016 closure of California Fitness. There is a strong feeling of deja vu, as California Fitness also made a similar statement saying that business will be as usual in Singapore.

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