The Hong Kong gym chain, "PHYSICAL Fitness & Beauty," announced a sudden closure last Friday (Sept. 6), leaving customers with prepaid
memberships and class packages facing significant financial losses.
The Consumer Council's Chief Executive, Gilly Wong, reported receiving 605 complaints by 8 a.m. today (Sept. 9), involving nearly HK$19 million, with the highest individual loss at HK$650,000 and an average of HK$31,000 per case.
One customer shared on a radio program that he spent over HK$10,000 for a 10-year membership and prepaid for coaching sessions in batches of ten, expecting to lose all invested money. He also mentioned that even if the Wan Chai branch reopens, it would be inconvenient for him due to distance.
Legislative Council member, Bill Tang, from HKFTU (Hong Kong Federation of Trade Unions) suggested that the new company taking over should negotiate directly with the property owners, indicating a disconnect from the original "PHYSICAL Fitness & Beauty" entity. He urged the new management to address the concerns of the community and employees promptly.
Another Legislative Council member, Edward Leung, from the DAB (Democratic Alliance for the Betterment and Progress of Hong Kong), received over 40 requests for assistance, with the highest single claim being HK$240,000 involving multiple prepaid contracts.
Leung criticized the practice of fitness and beauty companies requiring customers to sign contracts lasting 10 to 30 years as unreasonable and suggested adopting consumer protection measures similar to those in some U.S. states, which impose term limits on such contracts.
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