Last weekend, HealthLand announced the shocking temporary closure of 24 outlets. The new management later revealed that the sudden shutdown was due to mismanagement by the previous leadership.
In an interview with Sin Chew, HealthLand’s new CEO shared that the organisation is now in the process of gradually reopening its stores. He added that upon taking over, he discovered severe financial mismanagement by the previous team, which had led to significant arrears including unpaid rent, utility bills, and most importantly, employee wages.
Nearly 500 employees were owed two months of salary, amounting to nearly RM2 million.
The CEO, who assumed his position on August 15, said he found the company’s financial situation to be dire, with substantial debts.
“The previous management owed more than RM1.58 million in shop rental and dormitory fees. As for water and electricity bills, they owed around RM700,000,” he said.
He also revealed that the current management has filed a lawsuit against the former leadership for mismanagement, which will be submitted to the court for judgment.
New ceo in the middle
3-day emergency food aid programme
To support affected employees, the new management launched a three-day emergency food aid programme with help from business partners and shareholders, providing essential supplies to staff.
The CEO emphasised that reopening branches is the top priority. As of August 24, several outlets have resumed operations.
The next phase of reopening is set to begin in the coming week, aiming to restore all 24 outlets affected by the closure.
Also read: “Not a scam” – Wellness Centre Founder Responds After Closure Leaves RM500k in Unclaimed Massages
