perFACE to take over 2 branches of Physical, rebranding as 'perFIT'

Medical beauty group perFACE has expressed interest in taking over some branches of the recently closed gym chain "Physical" (舒適堡), with the Wan Chai and Mong Kok branches reopened as “perFIT”.

perFIT entered into a non-legally binding memorandum of understanding (MoU) with Luk Ngai Keung, director of Physical, on 3 October, according to its release on the Hong Kong Stock Exchange. They have agreed to develop all-dimensional cooperation and explore various opportunities to continue the business operation of certain beauty centres previously operated by Luk. 

“It is preliminarily expected that when the cooperation materialises, the group will expand the client base,” the release reads.

perFACE is intended to take over some fitness and beauty services from Physical, continuing to provide the remaining services to customers who have purchased gym memberships, personal training sessions, and beauty treatments, according to multiple media reports such as HKEJ and HK01.

Physical’s fitness business will be taken over by a new company established by Kennis Fu, founder and CEO of perFACE and rebranded as “perFIT”, it has reopened branches at Capital Building (京城大廈) in Wan Chai and Hollywood Plaza (荷李活商業中心) at Mong Kok under the new name. As for beauty and body services, perFACE will allow customers to access these services at its 11 centres.

Meanwhile, perFACE said it is negotiating with the landlords of other branches, aiming to maintain operations at these locations to minimise the impact on customers while also seeking more suitable locations for new stores. It is also arranging interviews with over 700 employees affected by the closure of Physical and has already hired about 200 to remain. 

Don't miss: Physical's Wan Chai branch reopens under new name 'HEALTHY'

MARKETING-INTERACTIVE has reached out to perFACE for a statement.

On the other hand, the Consumer Council has confirmed that perFACE is interested in taking over Physical's business and proactively approached the council last Wednesday (2 October), to outline their takeover intentions and engage in preliminary discussions. This is seen as an important step for consumers who have faced uncertainty over the past month.

According to the council, perFACE is in the process of taking over operations. It may later ask former Physical customers to sign consent forms, granting access to individual customer data and transaction records. This will allow perFACE to contact customers and arrange the details of the services offered.

Meanwhile, the council hopes that perFACE will provide consumers with details about subsequent arrangements, allowing them to make informed choices based on their needs and careful consideration.

In view of the concerns of some existing customers of Physical about the new investor’s access to their personal data, the Office of the Privacy Commissioner for Personal Data (PCPD) said in a statement that it has reached out to perFACE today (7 October) to understand its arrangements for transfering customer data and to request relevant documents, ensuring the compliance with the Personal Data (Privacy) Ordinance (PDPO).

In relation to tthe abrupt shutdown of Physical, the Consumer Council has received over 5,344 complaints, involving a total of HK$191 million as of last Friday (4 October). The average amount involved in each case is HK$35,714, with the highest amount involving approximately HK$2m and the lowest at HK$99.

This comes after the abrupt closure of Physical Fitness earlier last month. A few weeks later, a Physical Fitness gym branch in Wan Chai reopened under the new name of “HEALTHY”. perFACE clarified that it has no connection to "HEALTHY," stating that it does not know or have any contact with them, according to HKET.

Photo courtesy: Facebook page@舒適堡關注組 (Physical Fitness Concern Group)

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