Yuen Long's Physical Health Centre Shuts Down Amid COVID-19 Pandemic Challenges

Friday, 6 September 2024, 03:20

Yuen Long's Physical Health Centre has announced a temporary shutdown due to ongoing challenges stemming from the COVID-19 pandemic. The iconic gym chain, which has operated for 38 years, has faced mounting financial pressure, including demands from the Mandatory Provident Fund (MPF) Schemes Authority for unpaid employee contributions. Talks with new investors for reopening branches are in progress.
Scmp
Yuen Long's Physical Health Centre Shuts Down Amid COVID-19 Pandemic Challenges

Yuen Long's Physical Health Centre Announces Temporary Shutdown

Yuen Long's renowned Physical Health Centre has revealed that it will temporarily cease operations after 38 years, primarily a consequence of the lingering effects of the COVID-19 pandemic. The center has been pressured by the Mandatory Provident Fund (MPF) Schemes Authority to settle approximately HK$3 million (US$384,615) in outstanding contributions for its employees.

While the economic landscape in Hong Kong has shown signs of recovery, many landlords still impose high rents that the fitness chain finds unsustainable. The chain has indicated it is in talks with potential investors to lease its branches once a consensus is reached.

Challenges Faced

  • The Mandatory Provident Fund (MPF) Schemes Authority's legal pressures
  • High rental costs despite improving economic conditions
  • Potential for reopening contingent on negotiations with landlords

Physical’s management expressed deep regret over the necessity of this decision, highlighting their long-standing presence in the community and ongoing commitment to their 500,000 members in Hong Kong.

Future Prospects

  1. Continued negotiations with landlords
  2. Engagement with potential investors
  3. Plans for reopening as soon as agreements are finalized

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe