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California Fitness liquidators' report closes door on member refunds, blames manageme

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Old 09-04-2019, 11:53 PM   #1
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California Fitness liquidators' report closes door on member refunds, blames manageme

California Fitness liquidators' report closes door on member refunds, blames management and auditor

https://www.straitstimes.com/singapo...management-and




SINGAPORE - Nearly three years after the abrupt closure of gym chain California Fitness left thousands of members here more than $20 million out of pocket, liquidators for its parent company JV Fitness have closed the door on them getting their money back.


In a detailed report to creditors seen by The Straits Times, liquidators from Ferrier Hodgson blamed JV Fitness's management and auditor for allowing gym members to fund the business for three years even though it was already heavily in debt.

The closure of California Fitness's three gyms here in 2016 highlighted the dangers of prepayments with its nearly 27,000 members left in the lurch for $20.8 million in unused gym access fees and unredeemed training sessions.

Deloitte, which audited JV Fitness's last financial statements in 2013, declined to answer liquidators' questions on why it did not raise red flags, the report said. The liquidators said that in their view, there was a "fundamental failure" in the conduct of JV Fitness's directors, management and auditors to prudently and reasonably assess the veracity of the financial position of the company.

A legal opinion it obtained said that Deloitte had "breached its duty of care to the company" by failing to adhere to auditing standards.

Deloitte said in response to queries that it is "unable to comment due to client confidentiality obligations".

JV Fitness's sole remaining director, Mr Lim Chia Wei, could not be reached at his registered address of a commercial building in Beach Road. He is currently listed as the director of more than 70 firms here, including Ralph Lauren (Singapore) and Tesla Motors Singapore.


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Old 10-04-2019, 12:15 AM   #2
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Field sho moddy
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Old 10-04-2019, 12:16 AM   #3
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I thought you'd sleep well
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Old 10-04-2019, 12:17 AM   #4
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I thought you'd sleep well
Loose marnee how to sleep well?
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Old 10-04-2019, 12:18 AM   #5
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wtf, director of >70 firms? dua pek gong ah?
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Old 10-04-2019, 12:25 AM   #6
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Loose marnee how to sleep well?
But but but so many other sinkies pwned
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Old 10-04-2019, 12:28 AM   #7
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Auditors go jiak sai

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Old 10-04-2019, 12:29 AM   #8
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Long suspected auditors dun care whether u cheat ppl money...as long as u record the money cheated correctly in your accounts is ok liao

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Old 10-04-2019, 01:30 AM   #9
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Looks similar to Hyflux.

The company was loss making for yet with negative assets but no one raise any findings. Even allow Olovia Lum to continue to extract assets from the company until immediately before the liquidation!
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Old 10-04-2019, 02:01 AM   #10
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Not surprised. I expect the same thing to happen to obike refunds as well given the lack of news thus far.

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Old 10-04-2019, 05:41 AM   #11
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fake news! we all know CASE fights for consumer rights as our paper roaring tiger regardless smal or big business hor!
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Old 10-04-2019, 05:54 AM   #12
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wtf, director of >70 firms? dua pek gong ah?
professional tuapek kong
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Old 10-04-2019, 06:19 AM   #13
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fake news! we all know CASE fights for consumer rights as our paper roaring tiger regardless smal or big business hor!
Our Supreme Dear Leader PAP Lee Hsien Loong will never allow this to happen!!!

He will protect Sinkies and their money!!!!

As long as PAP is in charge, we have nothing to worry about!!!

70% strong Heavenly mandate can't be wrong!!!!!
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Old 10-04-2019, 06:19 AM   #14
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Jail them 1000years la..so many scums in sinkapo
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Old 10-04-2019, 06:25 AM   #15
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Orbi good. Just woke up but feel sleepy now.
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