Hong Kong’s gym chain Physical to shut all branches "temporarily"

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As reported, about 110 affected employees have sought help from the Labour Department.

Following the earlier reporting of the company defaulting on the Mandatory Provident Fund (MPF) contributions and surcharges for 740 employees, Hong Kong’s gym chain Physical announced last Friday (6 September 2024) the closure of all branches in the city "temporarily" to restructure the business.

According to its official statement, the fitness centre said despite the gradual improvement of Hong Kong’s economic environment, landlords of certain branches still maintain high rents. The company, therefore, “has no choice but to close all branches temporarily”, adding that this is “a very painful decision”.

It continued that there are new investors in the pipeline for the company. The company is actively negotiating with landlords, and will reopen the relevant branches once a consensus is reached. For now, an initial consensus has been reached on the Wan Chai branch, which will be operated under a new brand ‘Healthy’ and reopen within a few days.

The Hong Kong Federation of Trade Unions (HKFTU), the Hong Kong Recreation and Sports Professionals General Union, and the Hong Kong Fitness Professionals Association, have expressed great concern about the rights and benefits of Physical’s employees. Their representatives and a member of the Hong Kong Legislative Council from the HKFTU, Hon Kwok Wai-keung, have accompanied about 50 affected employees to file a complaint to the Labour Department (LD).

As reported by local media outlets, currently about 110 affected employees have sought help from the LD. RTHK quoted Ho Kai-ming, Under Secretary for Labour and Welfare, saying that the Labour and Welfare Bureau was very concerned about the incident and would assist affected employees in pursuing wages in arrears at the Labour Tribunal.

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Image / Physical's website