TAIPEI (Taiwan News) — True Yoga Fitness announced Tuesday it will permanently close all branches starting Wednesday, leaving members and staff facing refunds and potential disruptions as Taipei authorities step in to oversee trust-fund protections and advise on compensation procedures.

The Taipei City Department of Legal Affairs said it has asked the company’s bank to halt the transfer of trust funds and advised members who purchased classes with credit cards to apply for dispute compensation, per CNA. Those who paid in cash should file a petition with the court for a payment order.

After announcing in May that its Zhongxiao branch would close, the Singaporean yoga and fitness chain said on Sept. 23 that due to internal operational adjustments and staffing arrangements, its Dunnan, Guting, Tianmu, Zhonghe, Xizhi, and Taoyuan branches would temporarily suspend operations. On Tuesday, the company posted on Facebook that it will cease operations from Oct. 1 and begin legal procedures for dissolution and liquidation.

The statement said True Yoga Fitness has operated in Taiwan for 20 years but was hit hard by the COVID pandemic and the economic downturn, with long-term losses exceeding the firm’s capacity to sustain operations.

Despite the team’s efforts, the company said the situation could not be reversed. After careful evaluation, it decided to make this announcement.

The firm apologized for the impact on members and business partners and pledged to manage debt settlements in line with the law. It said it would ensure members can retrieve trust funds as soon as possible to minimize the impact on employees, members, and suppliers.

Taipei’s legal affairs department said the trust account still holds over NT$210 million (US$6.89 million). To protect consumers, it asked Sunny Bank, the fund’s custodian, to suspend transfers of trust assets to the company and to promptly announce refund procedures.

The department also advised that, in addition to requesting refunds for unused classes, members should contact issuing banks for credit card dispute claims or apply to the court if they paid in cash. It reported receiving over a thousand complaints and urged True Yoga Fitness to cooperate by providing Sunny Bank with membership details.

If the company fails to refund members, consumer groups may pursue class-action lawsuits. Meanwhile, Taipei’s labor department said inspections were carried out on Sept. 25 and no mass layoffs have been reported.

The labor department said it will continue monitoring the case and enforce the Act for Worker Protection of Mass Redundancy if necessary.