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Bikram Yoga Katong announces closure in 2 weeks, says will compensate students

SINGAPORE — Three-year-old Bikram Yoga Katong (BYK) has announced that it will close in two weeks, a move that will affect some 300 students.

SINGAPORE — Three-year-old Bikram Yoga Katong (BYK) has announced that it will close in two weeks, a move that will affect some 300 students.

In an email sent to their students, that was also posted on its Facebook page, on Thursday (Sept 1), its owners, Maria Lourdes Chan and Jezrael Heng, assured students that they will honour the packages and reimburse them for unused classes.

Explaining the closure, Chan and Heng said the studio’s lease will be up on Sept 14, and they are not in a position to continue with their current landlord “because our rent is astronomical”.

They added that rent works up to S$20,000 a month, which has not been sustainable over the past year.

“We have tried our best to negotiate to drop the rent. While the landlord was finally willing to do so, it was under terms that were unacceptable to us,” they added.

“Thus, it is with a heavy heart that we have to tell you that we must close BYK. We have topped up the rent from our own savings for the past few months, and cannot continue to do so. We have looked at alternative locations to move into, but moving fees, too, would leave us completely financially strapped in the near term.”

The owners pointed out that they had begun to limit sales, especially of bigger packages, after they realised their tenancy was in question in late July. They stopped selling annual unlimited packages as well as 100 and 80 Class Cards, instead introducing the 5 Class Cards.

The 100 Class Card cost S$2,588, their Annual Unlimited package cost S$3,238 and the 5 Class Card cost S$208.

“It’s common practice to first slash prices, sell big, then close and leave clients without compensation,” said Chan in a press release. “This isn’t the route we wanted to take. We, as yoga teachers and as business owners, feel morally bound to not simply walk away from our clients who trusted in us.”

“We wanted to make sure that if we did not re-sign our lease, we could honour the packages bought as far as possible,” she added.

Chan, who was personal trainer to Japanese queen of pop Ayumi Hamasaki and had gone on tour with her last year, said their students are encouraged to complete as many classes as they can between now and Sept 14. Those on Class Card packages will also be allowed to share classes with anyone they choose.

For those who are unable to finish using their packages, they will be recompensated based upon each students’ remaining classes, as well as on the package’s expiry date.

Chan estimates that repayment fees will come up to “at least six figures at the moment”. In her email to students, the owners said they are working on a reimbursement scheme that is fair for both parties. “However, it may take us some time to pay you back. Our financial commitments also include paying out of pocket to break down the studio, to return it to its original state.”

Reactions from students have been mostly positive on Facebook. “Thank you BYK for letting us know early and being able to clock in a few more sessions. Sadness that this wonderful studio is closing,” said Cynthia Yeow.

Added Wen Sujing: “Such sad news! This is where I started my yoga journey and did my first backbend...Thanks for all the great classes and I’m glad I started with such awesome teachers.”

A Consumers Association of Singapore (CASE) spokesman told TODAY that as of 4pm today, it has not received any complaints about the studio's closure.

Asked if they will consider looking for an alternative spot in future, Chan said it “is not out of the question”.

“However, we do not have the capital for downpayment on rent and must pay for break down and reinstatement of the current property before even considering moving forward with a new space.”

Bikram Yoga Katong is the latest fitness provider to shut its doors. Women’s only gym Vivafit shut all four outlets in March after running into financial issues, while 10-year-old Bych Hot Yoga shut its doors in April citing competition, a weak economy and its founder’s poor heath as reasons.

In July, fitness chain California Fitness abruptly announced its closure, leaving some customers badly out of pocket and racking up thousands of dollars in losses. The chain received criticism that it had continued to sell membership packages, with some members even renewing their membership just a few weeks before its closure.

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