The Office of the Consumer Protection Board (OCPB), a government agency attached to the Office of the Prime Minister, has asked True Fitness executives to clarify the reason behind its business closure and compensate affected members by the end of the week.
Pikanest Tapuang, OCPB deputy secretary-general, said the office will invite True Fitness executives to respond to complaints. If the company can't compensate customers, the OCPB will sue over the issue in the name of affected customers.
The OCPB announced yesterday its office was open to True Fitness's affected customers. People seeking to make formal complaints should bring their membership contracts and receipts.
True Fitness shareholders include Panuwat Paerattakul (51.0003%), CJ Group PTE Co (48.9%) and Patrick John Wee Ewe Seng (0.0007%).
True Corporation, one of Thailand's biggest telecom companies, has underscored that True Fitness is not a part of its business.
Fitness First marketing manager Orawan Kleawpatino said demand for fitness clubs is increasing, so the industry has a lot of room to grow.
Even so, both independent and big chain fitness clubs need transparent business operations to sustain their business, she said.
"It's not only about the size of the business; it's also about consumer loyalty," Ms Orawan said.
She said lifetime memberships are not a feasible offering for big fitness chains -- including True Fitness -- as the chains have to develop the necessary human resources and facilities. Lifetime memberships were one factor in True Fitness's financial troubles.
Christian Mason, managing director of Virgin Active, said Southeast Asians are becoming savvier when it comes to health and fitness, and they are looking for services, experiences and workouts that are engaging and reasonably priced.
Virgin Active's flexible membership options do not incentivise large upfront payments.
"Virgin Active offers consumers clear and easy-to-understand membership options," Mr Mason said. "Our debit cycle is fortnightly, which means customers pay for a maximum two weeks' subscription at any given time. Every potential member is allowed plenty of time to consider if they would like to sign up for our service."