Explainer | What led to Hong Kong’s Physical gym chain closure and how clients can protect themselves
The Post breaks down the gym’s financial woes and what safeguards are available to its members
Hong Kong gym chain Physical announced on Friday that it would shut down after 38 years in business, citing a need to restructure its business.
The closure followed a demand by the Mandatory Provident Fund Schemes Authority to settle about HK$3 million (US$384,600) in outstanding contributions for 740 employees, with the pension regulator warning that it would take legal action if the chain failed to do so.
The Post breaks down the chain’s financial woes and what customers can do to protect themselves.
1. What is going on with fitness chain Physical?
Physical Fitness and Beauty, which opened in 1986, announced on Friday that it would shut down, citing a need to restructure its business.
“Although Hong Kong’s economic environment has gradually improved since the Covid-19 pandemic four years ago, some landlords of certain branches still maintained high rents,” the chain said on its website.
It added that a new investor was negotiating with the landlords of various branches to continue renting spaces for the centres.
On its website, the fitness chain said that it had as many as 23 branches across Hong Kong, but by September of this year only 14 locations were listed.
