Coronavirus: Hong Kong fitness chain blames ‘unrealistic rent’, social-distancing toll in closing last branches

Goji Studios had eight outlets before its Whampoa branch became the first to close amid the Covid-19 pandemic in September 2020
The company has been sued multiple times after falling behind in rent and was unable to strike a deal with its remaining landlords

Coronavirus pandemic

Zoe Low

Published: 8:35am, 28 Dec 2021

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A troubled Hong Kong fitness chain has closed its four remaining branches, citing “unrealistic rents” and social-distancing regulations that crippled the industry during the coronavirus pandemic.

Goji Studios said it would facilitate the transition of memberships to another chain, Physical Fitness and Beauty, which has 20 branches in the city.

“As the government tightened social-distancing measures last year, many businesses were restricted from operating, and fitness centres were forced to close for several months,” Goji Studios said in a Monday statement on its Facebook page.

“The severe disruption of operations coupled with unrealistic rents in the market greatly increased the burden [on] fitness centres.”

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The fitness centre said it had been in the process of negotiating rental contracts with its landlords over the past months but had been unable to reach a consensus.

It also said it was unable to raise enough funds to maintain operations.

“To continue to provide services to members, the company has tried its best to raise the necessary funds, but we were unable to turn the tide, and finally had no choice but to make the decision of shops closure with a heavy heart.”

Throughout the pandemic, the Hong Kong government closed gyms, along with other venues such as cinemas, bars and party rooms as it battled various waves of infections.

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Those venues were allowed to reopen earlier this year as the city no longer saw widespread outbreaks of Covid-19.

Established in 2017, Goji Studios had eight branches before the pandemic forced the closure of its Whampoa outlet in September 2020. It had also been sued multiple times over rent arrears for its Kowloon, Mong Kok and Tsim Sha Tsui branches.

The Tsim Sha Tsui outlet closed earlier this month and only four branches were still listed on the gym’s website as of Monday.

In April, the company underwent a restructuring, laying off 75 of its 450 employees.

One of Goji Studios’ outlets in Central. Photo: Nora Tam

The Consumer Council said it had received 114 customer complaints since mid-December that were mainly related to the closure of Goji Studios’ remaining fitness centres, involving a total of HK$2.36 million.

The council said it was contacting the people in charge of the fitness centre, urging them to notify customers as soon as possible how their unused services and prepaid packages would be handled.

“The council emphasises that if merchants fail to provide services in accordance with the contract due to special reasons, they must contact the affected users in a timely and proactive manner, and explain in detail the details of the relevant transitional arrangements,” it said.