(Yicai Global) May 25 -- Tera Wellness has closed a number of its gyms in Beijing, Shanghai and Guangzhou and is behind on employee salaries despite refuting rumors earlier this week that the struggling Chinese gym chain is about to go bankrupt and claiming just yesterday that it has secured CNY155 million (USD16.3 million) in a recent fundraiser.

Both of Tera Wellness’ outlets in Guangzhou are permanently closed, according to the Shanghai-based gym operator’s WeChat mini program.

Tera Wellness shut its gym three months ago and still owes money on the rent, staff at the mall where one of the outlets is located told Yicai Global. The company cancelled the lease at the end of last year or early this year, the property manager of the other gym said.

Two of Tera Wellness’ 10 outlets in Beijing were operating as normal when Yicai Global visited. Some of its gyms in Shanghai are open, but others are not. Those that are closed are undergoing equipment maintenance, Tera Wellness said.

And trainers at Tera Wellness’ gyms in Shanghai and some employees who have left the company told Yicai Global that they are owed money.

“I only got half of my December pay, which was the commission. The basic salary that was supposed to be paid in February has not been paid. Sometimes they pay the performance benefits, sometimes the salary. I haven’t received a normal wage for many months,” said Wang Rui, a fitness coach at one of the firm’s Shanghai gyms.

“Since last November, we have not seen a breakdown of the wage. Even the commission for November was only paid after the Lunar New Year holiday in January,” said Wang.

On May 22, Tera Wellness refuted online rumors that the company was about to go bankrupt and would soon start handing back membership fees. Moreover, people claiming to be company employees posted on social media that the firm had salaries arrears that it would pay only if they achieved certain performance indicators. Some customers also said Tera Wellness rejected their requests for refunds.

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

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

Editor: Kim Taylor