In September last year, the chain fitness and beauty group PHYSICAL Fitness & Beauty unexpectedly announced its closure, leaving over HK$73 million owed to former employees.
Eight creditors, representing a total of 366 former staff members, filed two separate applications for the liquidation of PHYSICAL Fitness & Beauty's two subsidiaries last year. This morning (Jan. 20), one of these cases was heard at the High Court.
The creditors stated that the debts are undisputed, and even if PHYSICAL Fitness & Beauty were to sell all its equipment, it would only yield HK$14.5 million, indicating insolvency. PHYSICAL Fitness & Beauty has agreed to allow a provisional liquidator to take over all relevant subsidiaries to facilitate an investigation into the appropriateness of liquidation. The case has been adjourned until Jan. 27, when it will be heard alongside another liquidation application involving a different subsidiary.
In addition to the eight creditors, Link Asset Management Limited has also filed a liquidation application against PHYSICAL Fitness & Beauty (Tsim Sha Tsui), with a hearing scheduled for Feb. 19.
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