Pure Fitness says unpaid rent dispute with Central branch landlord resolved
Physical fitness chain tells customers all of its gyms operating as usual, but some patrons remain sceptical of company’s future
A Hong Kong physical fitness chain has said the landlord of its Central branch is no longer pursuing legal action over nearly HK$14 million (US$1.8 million) in unpaid rent, charges and fees, and sought to reassure its customers that all of its gyms were operating as usual.
Pure Fitness said on Saturday it had “amicably resolved” the matter with Champion REIT and all pending legal proceedings had been withdrawn.
“We look forward to sustaining a positive relationship with all our landlords moving forward as we execute on our exciting plans for the future,” a spokesman for Pure said.
Champion REIT filed a writ through CP(SH) Limited against three companies associated with the gym operator in August, alleging Pure Fitness failed to pay rent from April to August for its branch in ICBC Tower in Central.
The five months’ rent amounted to HK$7.55 million, on top of management charges between June to August that totalled about HK$1.61 million.
Champion REIT also accused Pure of failing to pay other miscellaneous fees totalling about HK$4.43 million, including interest, government fees and other costs that arose from the missed rental payments.
A court document from September 26 showed CP(SH) and the three companies associated with Pure had reached an agreement for the lawsuit to be dropped.