(Yicai Global) May 24 -- Just a day after Tera Wellness Management rebutted a rumor of its impending bankruptcy, the Chinese fitness chain said it has secured CNY115 million (USD16.3 million) in a fundraiser led by Junzhuo Capital Investment.

The funds will go to enhance Tera’s operating capability and value and offer a better experience to customers, Shanghai’s biggest gym operator said on its official WeChat account yesterday.

But Tera’s name does not appear among the list of companies that Junzhuo Capital has invested in as shown on corporate information platform Tianyancha. Junzhuo Capital’s last investment dates back to 2017, according to Tianyancha.

On May 22, Tera dismissed online rumors that it was about to go bankrupt and would soon start handing back membership fees. Moreover, people claiming to be Tera employees said on social media that they were owed wages, or that they were only paid based on their performance. Some customers also said Tera had rejected their requests for a refund.

Tera has not hired any third-party individual or organization to issue refunds on its behalf, and any act that persuades its members to join social media groups to receive refunds or download any application in return for fees is fraudulent, it said on May 22.

The company has reported the matter to the authorities and will also start legal proceedings against those spreading the rumor and conducting online fraud, it added.

Tera, which has had over one million members since it opened 15 years ago, was on a blacklist for outstanding debts of CNY3.4 million (USD481,955) as of the end of January, according to Tianyancha. It has more than 3,000 staff.

In February, Tera had CNY98.3 million (USD13.9 million) frozen due to loan disputes, according to Finance China.

Editor: Futura Costaglione