Two managers arrested after fitness center closed

The Customs and Excise Department announced on Wednesday that it had arrested two individuals in connection with the Physical Fitness gym chain, which has closed its doors.

The two men arrested, a 67-year-old man and a 68-year-old woman, were both directors of the company. They will be released on bail pending the outcome of the investigation.

As of Wednesday noon, customs officials had received 900 reports of the closure of Physical Fitness, involving pre-paid fitness and beauty services worth about HK$38 million.

Fong Kwun-ting, head of the customs’ unfair trade practices investigation group, said the department had contacted more than 500 complainants in the past four days and examined the company’s operations.

“Some branches have rent arrears. In addition, we found that a day before the company announced its closure, that is, on September 5, it continued to sell prepaid gym and beauty services and accepted advance payments from consumers,” she said.

“She allegedly violated the Trade Descriptions Ordinance by improperly accepting payments.”

Fong added that his department would continue to review the company’s financial situation before it ceased operations and whether it had any abnormal sales activities.

Police also said they received 20 complaints about membership, personal training and beauty services, with losses ranging from HK$2,000 to HK$660,000.

Police Commissioner Eddie Chow added that police would treat the case as a criminal matter.

Meanwhile, speaking on an RTHK radio show, Consumer Council chief executive Gilly Wong revealed that a woman who paid HK$1.8 million for a membership, as well as private boxing, stretching and weightlifting lessons, filed a complaint yesterday.

The victim allegedly signed three contracts with the gym chain, including a 10-year contract that would come into effect in 2026 and a three-year contract that would not begin until 2037.

Some of the plaintiff’s unused classes would remain valid until 2050, Wong added.