Consumer Council Urges Gym Chain to Address Complaints Following Sudden Closure of Physical Fitness
The Consumer Council has received dozens of complaints following the abrupt closure of the Physical Fitness gym chain, and it called on the company to quickly reach out to affected customers. The watchdog said it had registered 34 complaints as of 4:30 p.m. on Friday, with the total financial impact estimated at around HK$1.9 million.
The Council expressed deep concern over the case, urging the gym chain to clarify its next steps for consumers, many of whom are seeking refunds or other forms of compensation. The closure has left members and staff in limbo, with uncertainty surrounding the reopening of certain locations.
Meanwhile, customs officers confirmed they had received four complaints related to the closure.
In an announcement, Physical Fitness said it is in the process of securing new investors and is currently negotiating lease changes with landlords. The company added that some of its branches will reopen once these agreements are finalized. However, the Consumer Council described these follow-up measures as “unclear,” leaving many customers uncertain about what will happen next.
Staff Left in the Dark
The closure has also affected hundreds of employees, many of whom have not been paid. A group of Physical Fitness staff visited a Labour Department office in Tai Koo on Friday to report their cases. Among them was senior personal trainer Mr. Fung, who said he was not surprised by the sudden shutdown.
“The company started delaying salary payments around eight months ago, so we [trainers] were mentally prepared for such situations,” Fung said. “I just didn’t expect the closure to happen right after the typhoon.”
Federation of Trade Unions lawmaker Aron Kwok, who has been assisting the affected workers, said staff members only learned of the closure through an online notice early Friday morning.
“It is certain that the staff will not receive their salary for August. They will also have to chase down payments for notice periods, mandatory provident fund (MPF) contributions, annual leave, statutory holidays, and severance pay,” Kwok said.
Unpaid MPF Contributions
The MPF Schemes Authority (MPFA) confirmed that Physical Fitness has not paid the mandatory provident fund contributions for June and July, affecting around 740 employees. The outstanding payments, including surcharges, amount to approximately HK$3 million.
The chairman of the Hong Kong Recreation and Sports Professionals General Union, Lee Yuet-man, said more than 700 instructors had been impacted by the closure. He highlighted the broader challenges facing the fitness industry, including high rent and a significant loss of staff.
Industry Struggles
Lee said the sector has been struggling since the pandemic, which forced gyms to close for extended periods. “We estimate that about 30 percent of employees have left the industry, with many transitioning to the delivery sector,” he said in a statement to RTHK.
He added that in recent years, some gyms have relocated from Hong Kong to mainland China in search of more favorable business conditions.
Many affected employees are now seeking employment at smaller fitness centers or considering opportunities in the Greater Bay Area, Lee noted.
The sudden closure of Physical Fitness has sent shockwaves through Hong Kong’s fitness community, raising concerns about the financial stability of the broader industry as it continues to recover from the pandemic’s impact.
