Closure of Singapore-based 1880 social club in HK allegedly leaves members in prepaid pickle

The unexpected closure of "1880 Hong Kong", a Singapore-based social club, was facing allegations that the company continued to entice customers to purchase prepaid packages before shutting down. 

Located at Taikoo Place, the club founder announced last Friday (May 30) that it would cease service at its Hong Kong branch just six months after its establishment due to "cash flow difficulties."

Opening its Hong Kong branch on November 22 last year, the social club was once recommended by InvestHK for its diverse services, including gym facilities, a spa center, and a signature Singaporean restaurant.

Meanwhile, the "1880 Singapore" will be managed by a new group, which will grant Hong Kong members overseas membership in Singapore for one year.  

According to sources, the club initiated a "referral program" on April 28 to encourage existing members to invite newcomers to join by the end of June, offering a HK$3,000 dining credit for each successful referral.

Additionally, the club promoted various prepaid packages on May 13—just two weeks prior to the closure—featuring gym services priced at HK$10,000, HK$30,000, and HK$50,000, respectively.

In response, Customs confirmed receiving relevant reports and enforcement action will be taken if any violations of the Trade Descriptions Ordinance are found. 

Under the Trade Descriptions Ordinance, any merchant that accepts payments for a product without the intention to supply or offers materially different products could face a fine of up to HK$500,000 and a maximum of five years in prison.