Nearly two months ago, the Getfit gym and yoga brand suddenly announced a temporary suspension of operations, surprising not only customers but also suppliers and shareholders.
When the former board members did not participate in the restructuring process, the old and new shareholders, out of their love for this 14-year-old gym and yoga brand in Ho Chi Minh City, came together to embark on a mission to restore the brand.
The past 50 days have likely been challenging for the new leadership, but positive signs have begun to emerge. As the saying goes, every cloud has a silver lining. Mr. Le Van Hung, the new CEO of Getfit Holdings, shared, “The good news is that Getfit is improving day by day.”
What challenges did the restructuring team face when taking on the heavy responsibilities left by the previous management?
Mr. Le Van Hung: We all saw countless difficulties ahead, and indeed, we had to face them head-on. When the suspension happened, we sat together for a long time to discuss and answer the question, “Do we really want to do this? Are we determined to bring Getfit back?” Ultimately, we answered “yes,” and thus the restructuring team was formed.
Initially, we faced significant pressure from the burden of debts. Getfit owed the most to its customers, who had signed up for long-term packages and still had valid contracts. There were also rents, employee salaries, and payments to partners for cleaning and maintenance services to consider.
Meanwhile, customers were the most upset as they were unsure about the future of their fitness routines. That’s why we organized the first dialogue session with them. By mobilizing resources from various sources, we finally reopened the Hoang Dieu and Mia branches to serve customers, as you can see.
CEO Le Van Hung: Our immense love for the Getfit brand led us to join the restructuring effort.
What has been the outcome of the restructuring so far?
We still have a lot to do, but the positive sign is that Getfit is improving daily. When we reopened, many customers shared their trust and affection for us by willingly paying for packages at a time when we needed it the most.
Some students even offered to contribute money to help the restructuring team improve the gym’s facilities. This was a significant motivation for us, and it doubled our passion compared to before. To reciprocate our customers’ support, we created better class offerings. The yoga and Zumba classes, previously led by highly skilled Indian instructors who could speak Vietnamese, are now even more engaging and energetic.
From initial skepticism, customers have gradually invited their friends and family to join, resulting in a class occupancy rate of over 90%. We will soon introduce additional services to further delight our customers.
Our current team is also a significant motivation for us to believe that we are doing meaningful work, creating jobs, and adding value to the community and society. Many employees expressed their desire to stay with the company, as it provides them with stable employment, and they are willing to make some sacrifices for the greater good.
What about the things that haven’t been accomplished yet?
To be frank, we still have a lot to do. We need to continue restructuring debts owed to suppliers and employees’ and instructors’ salaries from the previous period. It’s important to note that as new members of the restructuring team, we need time to get Getfit back on track. Once we generate profits, we will fulfill our financial obligations.
Recently, some former employees expected us to immediately settle their outstanding salaries, which presented us with certain challenges. What I want to emphasize is that Getfit is improving, and that’s a positive sign.
Finally, our biggest concern remains finding a solution for the Au Co branch. Due to financial constraints, we have not been able to allocate resources to reopen this location.
It seems like the gym industry is facing challenges, and competition has become more intense than ever. In your opinion, what will enable a business in this industry to thrive?
Gyms are in the business of health and wellness, and as you can see, our society is increasingly focused on living healthier and happier lives. People’s incomes are rising, and so is the demand for fitness and well-being.
I don’t think this industry is struggling. The challenge lies in each company’s management, their ability to adapt to market changes, and their willingness to innovate and meet customer needs. We are aware of these factors, and I am confident that once we overcome this difficult period, Getfit will emerge stronger and have a bright future ahead.
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