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PR Newswire
12-03-2011, 07:43 AM
Mar 12, 2011
True Spa customers seek compensation
240 have made claims against chain for unused portions of packages after closure
By Jessica Lim
A GROUP of beleaguered customers of True Spa have banded together to demand compensation from the spa chain over its closure last year.
It left them with unused portions of packages they had paid thousands of dollars for.
A law firm representing 240 of the spa's roughly 9,000 customers sent two statutory demand letters to True Spa yesterday. Another one was sent out earlier this week.
Seventy of them are claiming $249,873.13. The others will soon be sending out their letters of demand as well. The total amount the 240 customers are claiming is expected to exceed $600,000.
The letters were hand-delivered to the Jit Poh Building in Keppel Road, the company's registered address. True Spa - listed as a live company with the Accounting and Corporate Regulatory Authority - has 21 days to pay up or challenge the demand.
If there is no response, the company will be presumed insolvent and an application will be made to wind it up. Liquidators will then step in to examine the company's books and financial affairs.
Lawyer Salem Ibrahim, from Salem Ibrahim & Partners, who is representing the group, said: 'The advance payments made by True Spa customers were utilised by the company, and we hope to ascertain if any recoveries of these monies are possible.'
True Spa, which had two outlets at Ngee Ann City and Cuppage Terrace, closed suddenly last April and its customers - with unused amounts of packages worth $200 to $15,000 - were informed that another spa would take over its operations.
But that spa chain, Subtle Senses, was unable to handle the influx of customers. It tanked in October, leaving those 'rescued' - as well as about 8,000 of its own clients - in the lurch.
Many of True Spa's customers showed up at the creditor's meeting held for the liquidation of Subtle Senses last November, but they were told that their contracts were still with True Spa.
Taking matters into their own hands, a few customers approached Mr Salem and went online to look for other victims. Eventually, 240 agreed to contribute money to fund the legal process, such as paying for court and liquidator fees.
'It has been a really long road getting to this point. There is no telling how this will turn out but I hope it will go some way in helping us find out what happened to our money,' said Ms June Lau, 40, who put in a claim for $1,500.
Another customer, Miss Elaine Wong, 25, put $700 into the fund. She is making a claim for $6,800. 'They owe me my money and an explanation. I want justice,' she said.
When contacted by The Straits Times yesterday, the True Group - which also manages True Yoga and True Fitness - said the spa would not be refunding customers the unused amounts of their packages as 'it is a dormant company with no assets'.
Its spokesman said the chain had transferred its business operations to Subtle Senses. This included the takeover of its premises, fixed assets including aesthetics equipment, outstanding membership packages and cash - all worth close to $5 million.
'An essential condition of the agreement stipulated that Subtle Senses undertook to honour all existing True Spa membership packages,' said the spokesman, who added that it had also given customers the option of converting True Spa packages into True Fitness or True Yoga memberships.
'It could not be reasonably foreseen that Subtle Senses would not meet its obligations to service True Spa members.'
She added: 'True Spa is also a victim of the sudden liquidation of Subtle Senses as the latter was not able to fulfil the contractual business agreement signed with True Spa.'
The HealthTrends Group, which took over Subtle Senses, declined comment when reached.
Numerous spas have closed abruptly in the past two years. They include Wellness Village and Simply Spa, which closed in 2009, and Wax In The City, which shut down last April. These closures affected more than 15,000 customers.
limjess@sph.com.sg
True Spa customers seek compensation
240 have made claims against chain for unused portions of packages after closure
By Jessica Lim
A GROUP of beleaguered customers of True Spa have banded together to demand compensation from the spa chain over its closure last year.
It left them with unused portions of packages they had paid thousands of dollars for.
A law firm representing 240 of the spa's roughly 9,000 customers sent two statutory demand letters to True Spa yesterday. Another one was sent out earlier this week.
Seventy of them are claiming $249,873.13. The others will soon be sending out their letters of demand as well. The total amount the 240 customers are claiming is expected to exceed $600,000.
The letters were hand-delivered to the Jit Poh Building in Keppel Road, the company's registered address. True Spa - listed as a live company with the Accounting and Corporate Regulatory Authority - has 21 days to pay up or challenge the demand.
If there is no response, the company will be presumed insolvent and an application will be made to wind it up. Liquidators will then step in to examine the company's books and financial affairs.
Lawyer Salem Ibrahim, from Salem Ibrahim & Partners, who is representing the group, said: 'The advance payments made by True Spa customers were utilised by the company, and we hope to ascertain if any recoveries of these monies are possible.'
True Spa, which had two outlets at Ngee Ann City and Cuppage Terrace, closed suddenly last April and its customers - with unused amounts of packages worth $200 to $15,000 - were informed that another spa would take over its operations.
But that spa chain, Subtle Senses, was unable to handle the influx of customers. It tanked in October, leaving those 'rescued' - as well as about 8,000 of its own clients - in the lurch.
Many of True Spa's customers showed up at the creditor's meeting held for the liquidation of Subtle Senses last November, but they were told that their contracts were still with True Spa.
Taking matters into their own hands, a few customers approached Mr Salem and went online to look for other victims. Eventually, 240 agreed to contribute money to fund the legal process, such as paying for court and liquidator fees.
'It has been a really long road getting to this point. There is no telling how this will turn out but I hope it will go some way in helping us find out what happened to our money,' said Ms June Lau, 40, who put in a claim for $1,500.
Another customer, Miss Elaine Wong, 25, put $700 into the fund. She is making a claim for $6,800. 'They owe me my money and an explanation. I want justice,' she said.
When contacted by The Straits Times yesterday, the True Group - which also manages True Yoga and True Fitness - said the spa would not be refunding customers the unused amounts of their packages as 'it is a dormant company with no assets'.
Its spokesman said the chain had transferred its business operations to Subtle Senses. This included the takeover of its premises, fixed assets including aesthetics equipment, outstanding membership packages and cash - all worth close to $5 million.
'An essential condition of the agreement stipulated that Subtle Senses undertook to honour all existing True Spa membership packages,' said the spokesman, who added that it had also given customers the option of converting True Spa packages into True Fitness or True Yoga memberships.
'It could not be reasonably foreseen that Subtle Senses would not meet its obligations to service True Spa members.'
She added: 'True Spa is also a victim of the sudden liquidation of Subtle Senses as the latter was not able to fulfil the contractual business agreement signed with True Spa.'
The HealthTrends Group, which took over Subtle Senses, declined comment when reached.
Numerous spas have closed abruptly in the past two years. They include Wellness Village and Simply Spa, which closed in 2009, and Wax In The City, which shut down last April. These closures affected more than 15,000 customers.
limjess@sph.com.sg
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