Fitness studio Haus Athletics shuts outlets; operating company in liquidation

HAUS Lifestyle, which runs fitness studio chain Haus Athletics, has been placed into creditors’ voluntary liquidation. Both its outlets, at Cross Street Exchange and OUE Downtown Gallery, have been shut down.

Cameron Duncan and David Kim of restructuring specialist KordaMentha were appointed provisional liquidators on Apr 21, according to a creditors’ letter seen by The Business Times.

Some 268 provisional creditors, many of them studio members, are owed S$1.8 million in total. A creditors’ meeting was held on May 9 (Tuesday).

The fitness industry has been hit by a couple of other recent closures.

UFC Gym – the franchise of US-based Ultimate Fighting Championship (UFC) – shut both its City Square and CityLink branches without prior notice, The Straits Times reported yesterday. Some UFC Gym members were said to have bought packages costing between S$1,200 and S$3,800, on top of personal training sessions.

Last September, Kyklos Studio and its affiliated brand X Fitness closed overnight. Users said at the time that they were unable to get refunds for their spin and yoga packages.

Opened in September 2017, Haus Athletics offered high-intensity interval training (HIIT) and strength-based group classes. The boutique studio was co-founded by Reagan Kang, a former national swimmer for Malaysia and bodybuilding champion.

The fitness chain first announced that it would cease operations at its OUE outlet on Apr 19, in an e-mail to members on Apr 17.

In a second e-mail to members a week later, the studio said it would cease operations at its remaining Cross Street Exchange outlet on Apr 26 – “after careful consideration and much contemplation”.

“This decision was not an easy one to make, but due to financial difficulties and changes in the market, it was necessary,” said the e-mail, which was signed off by the Haus Athletics team.

“The past year and a half has been a trying time for all of us as we navigated the pandemic and its aftermath. Despite our best efforts, we were unable to meet the long-term expectations of our landlords and adapt to the changes in the market.”

The team added that it had “worked tirelessly to keep the studio running” up till this juncture, but that there were “circumstances beyond (its) control.” It said it would reach out to its members shortly with an active package to discuss their options.

The creditors’ letter on the appointment of provisional liquidators was sent to studio members by KordaMentha on Apr 28.

Members of Haus Athletics told BT the studio’s closure was a surprise.

“Everything seemed to be normal; the instructors didn’t say anything about the studio closing down either,” said Irlada Seow. She had attended a class on the evening Haus Athletics announced the closure of its remaining outlet.

She still has 43 remaining classes – worth more than S$900 – as part of a package shared with two others.

“The reality of the situation hit me after the letter to creditors arrived. It’s unlikely that we will be getting back the full amount that we are owed.”

Another member, who declined to be named, said she had no idea that the studio was in financial trouble, as the classes were usually fully booked after pandemic-era restrictions were lifted in 2022.

She purchased a package of 14 classes in February and has two classes left unclaimed.

“We were given a day or two’s notice. The (studio) said it would reach out to us, but it was instead the law firm that sent over the document,” she said.

“I’m now rethinking my choices to purchase packages from other studios.”