A prominent Hong Kong labour rights legislator has urged authorities to investigate the “temporary shut down” of a major fitness chain, saying the company’s move may constitute criminal wrongdoing.
Lawmaker Tang Ka-piu’s call followed a senior official’s assurance that the Labour Department would offer assistance to affected workers who registered their cases to the government.
Physical Health Centre announced its closure on Friday after being in business in Hong Kong for 38 years, leaving the jobs of more than 700 people up in the air and triggering complaints from angry customers to the Consumer Council.
But the chain also said that talks were under way between a new investor and landlords to reopen existing gyms, as they blamed high rents being imposed by some landlords for its decision to close.
Tang said that the company ran the risk of violating the Trade Descriptions Ordinance with reports of staff promoting decade-long memberships to gym goers in July and August when the chain had already encountered financial challenges, including arrears in MPF.