What Can I Do? Gym in Liquidation, Says All Advanced Payments Void
I signed up for a gym membership at Fenix Fit earlier this year and availed their 10+2 promo package at max 4 packages (so total 48) at the whopping cost of SGD 7.2k.
I have only used 13 sessions and now I received email from the Gym Alliance of SG that the gym is under liquidation.
My coach says the payments are “void” and will not be refunded. 6k+ of unused sessions isn’t a small amount. What can I do? Is it a possibility to claim this back from my card company if all else fails?
I plan to submit the Proof of Debt to the liquidators but I am uncertain what this means. Will I get the money back?
I also checked the small claims court site but I don’t fully understand how getting approval from Higher Court works so it can be eligible for small claims court. Anyone here who can help explain?
Appreciate your answers and help! T_T Feeling extremely heartbroken about the hard earned money lost.
Netizens’ comments
- Yes you will have to submit Proof of Debt to the liquidation company and just wait and hope for the best. Quite unlikely you will get the full amount back as the money recovered will be first utilized towards payment of costs and expenses incurred in the liquidation.
Any remaining funds will be used to pay the creditors who are entitled to receive payments in priority, such as employees, CPF Board, Comptroller of Income Tax and then after that if there are still funds left it will be used to pay the other unsecured creditors, such as trade creditors and sundry creditors who have filed their claims (such as yourself) against the company.
No point going to small claim court the gym literally has no money to pay hence why they are going through liquidation in the first place. - Hello, sorry to hear about this. Do submit a Proof of Debt to the liquidators, enclosing all relevant supporting documents (eg contracts signed, proof of payment, etc) so that they have your claim and can keep you updated on any progress (if they do update creditors periodically). Unfortunately unless the liquidators manage to recover a large amount from sale of assets or outstanding debts, it’s quite rare for creditors like yourself to receive any significant money back.. even if there’s a possibility, liquidation can be a very long drawn out process.