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Connor Mycroft

The amount of money involved in complaints against a recently closed fitness chain has exceeded HK$17 million (US$2.2 million), Hong Kong’s consumer watchdog has revealed, with the biggest sum at HK$653,600.
The Consumer Council said on Sunday that it had received 521 complaints within two days of Physical Health Centre abruptly closing all its branches, while hundreds of disgruntled members and former employees separately sought help from a trade union group and a district councillor.
As of 8pm on Sunday, the total amount involved in the complaints to the consumer watchdog had reached HK$17,393,652, nearly tripling the figure from the previous day.
The average sum involved was HK$33,385, with the biggest claim at HK$653,600 and the lowest at HK$1,000, the council said.
It said it was “highly concerned” about the news of the fitness chain’s closure, and would pay “close attention” to any developments.
On Saturday, Physical revealed that one of its branches in Wan Chai would reopen after a consensus was reached with new investors.
A notice posted on its website on Saturday evening said the new company would operate under the “Healthy” brand, and promised to provide free services for all remaining gym credits and personal trainer lessons of existing customers.
When the Post visited on Sunday, lift access to the first and third floors of the building housing the Wan Chai branch had been deactivated.
A Customs and Excise Department letter was also posted over the chain’s sign at the building’s entrance.
It said the department, which enforces the Trade Descriptions Ordinance, was investigating the chain’s sudden closure.
Customs said on Sunday that it had received 392 reports in relation to the fitness chain, far exceeding the four it had received on Friday.
The department added it had set up a dedicated team to follow up with the aim to handle the cases “as soon as possible”.
Rex Wong Hiu-shan, the chairman of the Fitness Professionals Association, said the group was handling about 100 cases from former employees of the fitness chain.
Wong, who is also a member of the Hong Kong Federation of Trade Unions, added that the former employees he spoke with did not trust the reopening announcement, and they felt it was intended to “lessen the impact of pursuing claims against the old company”.
Terry Yip Man-pan, the district councillor for Tuen Mun East, also told the Post on Sunday that he had received almost 100 requests for help from both customers and coaches of the chain, with the total amount at around HK$2 million.

One customer, a 41-year-old painter surnamed Yip, said the move to reopen the Wan Chai location was “better than nothing”, but the gym was too far away for him as he lived in Tai Po district.
He said he had bought a 10-year membership for HK$20,000 last year, adding he would contact customs on Monday.
The client said he had received no communication from the company itself and had to rely on news outlets for updates, while he also doubted the reopening would see a change in business practices.
“I think they will really focus on the sales instead of giving good services,” he said.
The Labour Department said it had received employment claims from 110 staff as of Friday.
“[The Labour Department] is actively following up the situation and reaching out to the company’s management to urge the employer to properly handle the employment matters in accordance with the Employment Ordinance and the terms of the employment contract,” it said.
On Friday, Physical Health Centre said it would close temporarily following 38 years in operation. The decision left the jobs of more than 700 people up in the air.
The chain earlier said talks were under way between a new investor and landlords to reopen existing gyms, and blamed the closure on high rents.
The chain owes about HK$3 million in Mandatory Provident Fund contributions for its staff, with two months of pension payments and related surcharges unpaid.
The Mandatory Provident Fund Schemes Authority said the pension payments for August were due on Tuesday next week and warned it would take legal action if the amount was not settled.
Founded in 1986, Physical Health Centre had as many as 23 locations across Hong Kong at its height with around 500,000 customers.


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Hong Kong watchdog handling 521 complaints involving HK$17 million against Physical gym chain

Customs posted a letter on the chain’s sign saying it is investigating the chain’s sudden closure. Photo: Elson Li

Physical Health Centre had as many as 23 outlets at its height. Photo: Jelly Tse

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Physical Fitness Centre announced earlier this week that it would be “temporarily” closing. Photo: Jelly Tse

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A Physical Fitness branch at Lok Fu Plaza. The company said talks were under way between a new investor and landlords to reopen existing gyms. Photo: Jelly Tse

News

Hong Kong

Society

Consumer Council says it received 521 complaints within two days of Physical Health Centre abruptly closing all its branches


Consumer Council says it received 521 complaints within two days of Physical Health Centre abruptly closing all its branches.


Hong Kong economy

Mandatory Provident Fund (MPF)

Consumer protection in Hong Kong

Consumers