HK gym chain Physical's closure garners complaints involving HK$31m

The Consumer Council has received over 1,000 complaints regarding the abrupt shutdown of Hong Kong gym chain "Physical" (舒適堡), involving a total of HK$31 million as of Monday.

The average amount involved in each case is HK$31,007, with the highest amount involving approximately HK$650,000 and the lowest at HK$1,000. The watchdog has expressed significant concern regarding the incident.

Last Friday, Physical decided to shut all physical stores in the city after 38 years in business, citing its inability to afford high rental costs.

According to its official statement, Physical said 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. As such, it decided to temporarily close all physical stores on 6 September to restructure its business.

"After accompanying everyone for 38 years and witnessing the ups and downs of Hong Kong's economy, it is truly a heartbreaking decision that we could not continue to be with everyone until the end. This is an incredibly difficult choice to make,” the statement reads.

Meanwhile, Physical said a new investor was closely negotiating with the landlords of various branches to continue renting spaces for the existing stores. “Once a consensus is reached, the relevant branches will be reopened to provide services to everyone.”

Physical added that the new investor has committed to continuing to offer all remaining gym memberships, personal training sessions, and beauty treatment services for free to Physical's customers. It also expressed its appreciation to its customers, team members, and partners for their encouragement and support throughout the years.

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This comes following a recent demand from the Mandatory Provident Fund (MPF) Schemes Authority for Physical to settle approximately HK$3 million in overdue contributions for 740 employees for June and July of this year. According to multiple media reports such as HK01, the authority has warned that it will pursue legal action if Physical fails to address the outstanding payments.

According to the company's website, Physical opened its first yoga fitness centre in Hong Kong in 1986 and has since established 23 branches across the city. The total area of these branches exceeds 800,000 square feet, serving over 1.5 million customers.

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