PURE Fitness brand sentiments dip following dispute with Central store landlord

PURE Fitness has seen a dip in brand sentiments following its dispute with its landlord over five months of unpaid rent of its Central store. 

This comes after the fitness chain said it had “amicably resolved” the case with Champion REIT after the landlord of its Central store withdrew the legal proceedings over nearly HK$14m in overdue rent, charges and fees.  

"All PURE Group branches are operating as usual and maintaining normal services. We look forward to sustaining a positive relationship with all our landlords moving forward as we execute on our exciting plans for the future," said PURE in a statement seen by MARKETING-INTERACTIVE. 

Media intelligence firm CARMA observed over 500 mentions related to PURE Fitness’ recent dispute with its landlord. Of these, 19.6% had a positive sentiment, while 22.1% were negative. 

It’s notable that prior to the lawsuit, sentiment around PURE Fitness was 48.4% positive and 12.5% negative. Post-lawsuit, sentiment shifted to 19.6% positive and 22.1% negative. 

While netizens generally understand that the fitness industry, particularly traditional operators, hasn’t fully recovered to pre-COVID levels, many were surprised that PURE would be involved in a lawsuit with its landlord, said CARMA’s Hong Kong general manager Charles Cheung.  

“Although the dispute has reportedly been resolved, some believe PURE's financial situation remains precarious. This belief is supported by news of staff layoffs and the introduction of more free trials, which were previously uncommon. These actions are seen as attempts to quickly attract new members,” he added. 

Several netizens suggest that gym operators need to rethink their business models, as the public appears less interested in traditional gyms with large spaces and bundled personal training sessions, he said. 

“The recent closure of Physical Fitness was frequently cited as a cautionary tale, with many expressing their preference for flexibility over having a well-equipped, large gym.” 

On the other hand, several netizens believe PURE remains financially stable, citing the full severance payments to laid-off staff and the loyalty of its customer base, Cheung added. 

Back in August, Champion REIT filed a lawsuit through CP(SH) Limited against three companies associated with PURE, accusing the gym chain of failing to pay rent from April to August for its branch in ICBC Tower in Central. 

The five months’ rent equals HK$7.55 million, on top of management charges between June to August that amounted to about HK$1.61 million.

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