2 March 2011
RE: Conversion of True Spa and True ‘Est outstanding credits to True Fitness and True Yoga membership
Dear True Spa and True ‘Est members,
On 13 December 2010, the True Group launched an ex gratia goodwill solution to convert the remaining value under affected members’ True Spa and True ‘Est packages into True Fitness and True Yoga memberships. This is offered as an alternative for members who do not wish to take up Spa, Beauty and Wellness Alliance’s (SBWA) offer of assistance and members had to indicate their interest in writing by 28th February 2011.
We had previously sent official letters to affected customers via post, electronic mail and also made this announcement on the True Spa website. However, at the request of members, the True Group will now extend this deadline to 31 March 2011.
Affected members who are interested in taking up the above offer will need to write to our customer service representative at email@example.com before the deadline of 31 March 2011. Kindly refer to our previous announcement dated 13 December 2010 for further details on the said conversion plans.
Please also be reminded that upon selecting a conversion of the Unutilized Package into our All Clubs True Fitness and True Yoga membership, we will inform SBWA accordingly and members may no longer redeem packages with SBWA.
13 December 2010
Dear True Spa and True ‘Est members,
This letter serves to explain the background in which the business operations of True Spa Pte Ltd and True ‘Est Pte Ltd came to be transferred to Subtle Senses Pte Ltd (“Subtle Senses”). In light of the recent liquidation of Subtle Senses Pte Ltd, we are also writing to you to propose an ex gratia goodwill solution to convert the remaining value under your True Spa and True ‘Est packages into True Fitness and True Yoga memberships, strictly at your option.
As you may be aware, True Spa Pte Ltd and True ‘Est Pte Ltd (collectively “True Spa”) and Subtle Senses entered into a business agreement (“the Agreement”) which resulted in the transfer of True Spa’s entire spa and aesthetics business operations to Subtle Senses. Under the Agreement, Subtle Senses took over the leases for the various outlets operated by True Spa (including the rental deposits paid to the landlords), took over all of True Spa’s assets which included furnished facilities and high grade aesthetics equipment, and assumed the obligations of servicing all of True Spa’s outstanding membership packages. A substantial amount of cash was also paid by True Spa to Subtle Senses under the Agreement.
An essential condition of the Agreement stipulated that Subtle Senses undertook to honour all existing True Spa’s membership packages. Subtle Senses also expressly agreed to indemnify True Spa from any claims made by existing members who are not satisfied with Subtle Senses’ level and quality of service.
This business agreement stemmed from the True Group’s decision to streamline its operations and focus on its rapidly growing core businesses (i.e. fitness and yoga centres) in Singapore and in the region. The True Group took considerable time to search for the right candidate who could deliver a high standard of service, and believed it found the right candidate in the Health Trends Group, which owns Subtle Senses. The Health Trends Group was chosen as they own a healthcare portfolio of medical, aesthetics and wellness clinics in Singapore and Hong Kong with reputable brand-name clinics like The Sloane Clinic® and Astique Medical® in Singapore, and the CliniCentral brand in Hong Kong.
Since its inception in 2003, Subtle Senses won numerous Excellent Service Awards including the “Promising Brand” award at the 2007 Singapore Prestige Brand Award, and the “Established Brand” award just two years later. CEO of Subtle Senses Gerald Lim was also recognized as Entrepreneur of The Year in 2007. Subtle Senses, an award-winning spa, presented itself as a natural and reliable choice given their past credentials and accolades.
All business operations including staff, membership contracts, facilities, equipment, operating and I.T. systems were handed over to Subtle Senses as of 25th April 2010. All decisions including staff recruitment and compensation, utilization of members’ packages, operating hours, customer relationship management, etc also fell under the management of Subtle Senses as from that date.
As all of True Spa’s assets and business operations have been transferred to Subtle Senses as of 25th April 2010, True Spa currently does not have any assets and is no longer in a position to service their members. Since being notified of the liquidation of Subtle Senses recently, we have immediately initiated talks with the Spa, Beauty and Wellness Alliance (SBWA). The SBWA has now announced on 11 Nov 2010 that they will step forward to assist True Spa and True ‘Est members subject to certain conditions. Please refer to the SBWA’s website (www.sbwa.com.sg) for details.
Conversion of True Spa and True ‘Est outstanding credits to True Fitness and True Yoga membership
The liquidation of Subtle Senses has been very sudden and unexpected and we are grateful to the SBWA for their offer of assistance. We hope that True Spa and True ‘Est members will engage SBWA in relation to their offer of assistance. As an alternative, True Fitness and True Yoga (which are separate business units and entities from True Spa and True ‘Est) would like to offer on a goodwill basis an opportunity for affected True Spa and True ‘Est members to convert their remaining unutilized spa and aesthetics package (including bonus credits) (“Unutilized Package”) into an All Clubs True Fitness and True Yoga membership. The All Clubs True Fitness and True Yoga membership offered grants unlimited access to all of 6 True Fitness Centres and 2 True Yoga centres (i.e. a total of 8 centres) in Singapore. Please see the appendix for the location of the 8 centres.
The method of conversion is to use the remaining value of your Unutilized Package to be converted against the list price of our All Clubs True Fitness and True Yoga membership which is priced at $214 per month (inclusive of GST).
·Purchased spa package: $2,000 (inclusive of GST) with $1000 bonus credits
·Member utilised package value amounting to $625
·Un-utilized value of the spa package : $3,000-$625 = $2,375
·Period of fitness and yoga membership converted = $2,375 ÷ $214 = 11.09 months (round up to 12 months).
The above proposal for True Spa and True ‘Est members to convert their Unutilized Package into the aforesaid All Clubs True Fitness and True Yoga membership is strictly voluntary and offered purely only as an option for members who do not wish to take up SBWA’s offer of assistance.
Affected members who are interested in taking up the above offer will need to indicate in writing their interest by 28th February 2011 to our customer service representative at firstname.lastname@example.org
To assist members further, on a case by case basis, we will consider your request, at the time you elect to convert your True Spa/True’Est package, the opportunity to transfer the converted True Fitness and True Yoga memberships to your immediate family members only, subject to adequate proof of relationship.
Kindly note that upon conversion of your Unutilized Package into our All Clubs True Fitness and True Yoga membership, we will inform SBWA accordingly and you may no longer redeem your packages with SBWA.
True Fitness Centres
30 Raffles Place, #07-00, Chevron House
18 Cross Street,, #B1-26, China Square Central
1 Kim Seng Promenade, #03-14, Great World City Mall
80 Marine Parade Road, #07-15/17, Parkway Parade
3 Temasek Bolevard, #07-001, Suntec City Mall
1 Harbourfront Walk, #03-10/11, VivoCity
True Yoga Centres
20 Raffles Place, 26th & 27th Floor, Ocean Towers
9 Scotts Road, 4th Floor, Pacific Plaza.