Ayra Wang
Some customers of gym chain Physical Fitness have refused to sign an agreement with new service provider Healthy after its rebranded Wan Chai branch reopened yesterday, saying its clauses are vague.
Healthy, meanwhile, is seemingly distancing itself from Physical Fitness, with a notice posted outside the shop saying it deems all financial and contract disputes unrelated to the new brand.
The Capital Building branch on Lockhart Road reopened after the chain announced service suspensions of all 23 branches last Friday.
However, it will only service current Physical Fitness members upon signing a consent form.
A picture of the terms circulating online shows the statement: "Healthy has no obligation to provide the remaining services to customers in replacement of Physical Fitness."
Displayed outside the gym is a sign saying it will not be responsible for handling customer disputes with Physical Fitness.
"Healthy will only provide all remaining fitness cards, personal trainer sessions and beauty treatment services to customers of Physical Fitness on a complimentary basis," the notice said.
It added: "[Healthy] shall not be responsible for any financial or contractual disputes arising from Physical Fitness."
At the same, the Mandatory Provident Fund Schemes Authority said it will file a suit with the High Court next week against Physical Fitness for failing to pay its 740 employees' MPF contributions in June and July, as the chain has owed HK$4.8million from June to August.
And the Customs and Excise Department continued investigations into the chain after arresting its two founding directors. The department raided Physical Fitness's Causeway Bay branch yesterday.
A former member of Physical Fitness, Luk, signed a consent form, saying it was "reasonable," and he believed he would not suffer any loss. Another turned it down due to unclear terms, saying she will ask for a refund first.
Members of a victims group on Facebook called on people not to sign the consent, adding that the reopening was just the current operator's trick to escape legal liability.
"How is the new investor going to pay more than HK$100,000 of rent and salaries every month if they only accept old customers free of charge?" read online user Kwok's comment.
By 6pm yesterday, the Consumer Council had received 3,289 complaints comprising over HK$113 million in gym fees, the highest exceeding HK$1.8 million. While the new brand said it is willing to fulfill the remainder of affected customers' contracts, the council said consumers can still ask for a refund if they are unsatisfied with the new conditions.
Physical Fitness on Saturday said a new investor would take over its business and provide all remaining services to customers with no additional fees.
Neither the name of the new investor nor a website for the new company has been announced.
Rachel Fong Kwun-ting, head of customs' unfair trade practice investigation, said more arrests are possible.
Fong, on a radio program, said the department has been in touch with some 500 victims so far, focusing on customers who bought memberships earlier this month. The department had received 1,492 reports involving HK$72 million as of 4pm yesterday.
Federation of Beauty Industry (HK) founding chairman Nelson Yip Sai-hung on the same program implored affected customers to wait and monitor developments as Physical Fitness's operator had indicated it is also reopening its beauty services.
Yip said the industry has a mechanism to arrange for other salons to help complete treatments left unfinished by closed shops, but the mechanism has yet to be activated.
ayra.wang@singtaonewscorp.com