Struggling gym franchise California Fitness has ceased operations at all of its locations amidst claims of unpaid rent and outstanding wages. The closure extends to all other brands under its parent company, JV Fitness, including yoga club mYoga and Leap Fitness Centre.
There has been speculation over California Fitness’ financial troubles ever since its four-month-old Whampoa branch closed “indefinitely” last Monday. According to a post on the brand’s official Facebook, the closure was due to the landlord’s intention to “stop supplying some essential services to the premises”.
This morning, notices posted at various JV Fitness locations cited a court-ordered freeze on the company’s operating capital for the territory-wide closures. The freeze was ordered as part of a winding-up petition filed by former JV Fitness director Wong Ping-kuen in late June, which will be heard in court on August 31.
A Facebook “victims’ group” created last Friday has amassed over 2,000 members who say they’ve been affected by the incident. Some members pointed out that the amount of gym equipment and towels in certain outlets has been decreasing, while others accused California Fitness staff of continuing to sign on new customers despite knowledge of the company’s financial struggles.
Democratic Party Vice-Chairman Andrew Wan Siu-kin said such practices could qualify as a violation of the Trade Descriptions Ordinance, HKFP reports. As of last Friday, the party reportedly received over 200 requests for help from California Fitness customers and employees who claim they’re now out of pocket.
Bernie Feindor, who has been a California Fitness member for eight years, told Ming Pao that he was informed the chain was still in business last night, only to find his branch closed at around 6:25am today.
Having renewed his membership last year, Feindor will stand to lose around HKD5,000 in pre-paid fees from the company’s liquidation.
Another longtime member, identified by Ming Pao as Gurung, said he would lose HKD14,000 in membership fees.
The Customs and Excise Department arrested two senior California Fitness employees at company headquarters this morning on suspicion of violating the Trade Descriptions Ordinance. Sole JV Fitness director Wong Lun is also being sought by Customs on the same grounds, SCMP reports.
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