Hong Kong’s Physical Fitness chain shuts down, directors arrested amid fraud investigation

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In a plot twist straight out of a crime drama, Hong Kong’s fitness buffs were left in the lurch last week when Physical Fitness, a popular gym chain, slammed its doors shut on 23 locations across the city. What began as a complaint about high rents quickly spiraled into a full-blown scandal, with 2,600 frustrated customers holding prepaid memberships and personal training plans they suddenly couldn’t use. Physical Fitness promised that new investors would swoop in to save the day, but customers were left with empty promises and mounting concerns. The chaos has now drawn the attention of Hong Kong’s law enforcement, as two directors of the gym have been arrested in a case that seems to be unraveling by the minute.

The city’s Consumer Council and Customs and Excise Department have been bombarded with complaints, totaling over 900 reports by Wednesday noon alone. These reports involve a staggering HK$38 million in prepaid services, some customers paying as much as HK$1.8 million for fitness and beauty plans that now hang in limbo. It appears the gym had been accepting payments right up until the day before they announced the abrupt closure, leaving many questioning the company’s integrity. Adding fuel to the fire, news broke that Physical was behind on rent payments long before they shuttered their locations, raising suspicions about whether this closure was truly as sudden as they claimed.

As more details emerge, the plot thickens. The police, who have already received reports of membership payments as high as HK$660,000, have launched an inter-departmental investigation to uncover any unfair trade practices or criminal activity. The arrested directors, a husband-and-wife duo according to local reports, are now under the microscope as authorities dig into the gym’s operations. If found guilty under the Trade Descriptions Ordinance, the penalties could be steep—up to HK$500,000 in fines and five years behind bars. For now, hundreds of fitness enthusiasts are left without answers, their prepaid sessions slipping away like so many canceled workout plans.

But perhaps the most jaw-dropping revelation came from the Consumer Council’s Gilly Wong, who recounted a tale of contractual coercion that would make any personal trainer blush. One customer was reportedly strong-armed into signing a whopping 1,900 personal training sessions, some of which wouldn’t kick in until 2037. With total claims now hovering around HK$60 million, the clock is ticking for the gym chain to clarify whether a white knight investor will swoop in—or if customers will be left to pick up the pieces of this workout-gone-wrong.

(Source: SCMP | HKFP)

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