Gym chain Citigym scales back operations in Ho Chi Minh City

A Citigym representative confirmed to Tuoi Tre (Youth) online newspaper that the Van Hanh Mall club officially ceased operations, following eight years in business.

Meanwhile, the company has informed members that its Le Van Viet branch will suspend operations from Wednesday through next Wednesday.

Citigym has yet to provide further details about the reasons behind the changes or its upcoming restructuring plans.

The closures come as the gym chain continues to reorganize its operations.

According to its latest announcement, the suspension of the Le Van Viet facility is intended to facilitate adjustments to club operations.

Van Hanh Mall, meanwhile, which was included in Citigym's initial restructuring plan, has now been confirmed for permanent closure after eight years of operation.

In a notice to members, Citigym said the decision had not been an easy one.

The company said it had considered various alternatives and made efforts to find solutions that would allow the club to remain open.

However, given the challenges and actual operating conditions, Citigym said it had been left with no choice but to close the Van Hanh Mall facility as a necessary adjustment to its future plans.

Members whose only active memberships are registered at the Van Hanh Mall branch under the Off-peak, Express, Classic, Bronze and Silver packages will be automatically transferred to the Thanh Thai club, some two kilometers from the former location.

Their existing contract terms, including membership duration and benefits, will remain unchanged.

Members will also be entitled to one free transfer to another club within the Citigym network.

In addition, customers with a recorded history of working out at Van Hanh Mall between May 9 and November 9 will receive a voucher worth VND1.5 million (US$58) for medical consultations and rehabilitation services at RTD Rehab, a partner of the fitness chain.

The latest developments come just over a month after Citigym announced that it would keep its Van Hanh Mall and Dien Bien Phu clubs open, reversing an earlier decision to shut them down.

On September 15, Citigym notified members that both facilities would cease operations from October 1 as part of a relocation plan and a broader business restructuring initiative.

However, the firm unexpectedly reversed course on September 25, announcing that both clubs would remain operational following a review of possible operating arrangements and feedback from members.

In an earlier interview with Tuoi Tre, a Citigym representative acknowledged that the fitness market was undergoing significant changes, while the company was facing considerable operational challenges across its network.

The firm said it had reviewed and adjusted its business strategy to optimize resources, streamline costs and improve the performance of its remaining clubs.

Further changes to Citigym's services

Beyond restructuring its club network, Citigym has also announced the temporary suspension of all GroupX classes across its system from Monday to Sunday.

Yoga classes at several locations have also been adjusted, with fewer sessions being offered.

The company attributed these changes to difficulties in allocating resources and organizing class operations, adding that it was working with relevant divisions to address the issues.

The Citigym representative said the operational adjustments were part of a company-wide restructuring plan aimed at creating a leaner and more efficient business model.

The company also said it was reviewing and addressing customer complaints about service quality, reorganizing its workforce and ensuring that its obligations to employees were fully met.

Major gym chains close facilities as members question membership rights

Citigym's repeated changes to its closure plans–first announcing shutdowns, then reversing the decision before proceeding with further closures– have raised concerns among members about the stability of its services.

The uncertainty is particularly worrying for customers who have paid in advance for long-term membership packages and may be concerned about how their remaining membership benefits will be protected.

Before Citigym, California Fitness & Yoga had also announced the temporary suspension of operations at multiple facilities in Ho Chi Minh City, Hanoi and other localities.

Most recently, California Fitness & Yoga suspended operations at its Aeon Mall Binh Tan club from November 3.

As a result, the chain now has just one operating branch nationwide.

Meanwhile, Elite Fitness closed its last remaining facility in Ho Chi Minh City in June.