The grim prediction by Gordon Yau from Hong Kong Fitness Guide on Wednesday came as one of Hong Kong’s biggest gym chains, Fitness First, announced it’s closing all its eight branches amid the fifth wave of Covid infections.
“The prolonged challenges in not being able to operate our fitness centres have led us down this path,” the company said in a statement.
“Over the past months, the management team, alongside our parent company and shareholders, have explored and exhausted all revenues in the pursuit of maintaining business operations. Regrettably, we have not been successful.”
The firm will begin a liquidation process.
Gyms as well as other entertainment venues were ordered to close temporarily from January 7, with the government saying all social distancing rules will be extended until April 20.
Speaking to RTHK before the announcement by Fitness First, Yau said he’s not surprised to see big chains go under, as they have to spend hundreds of thousands of dollars in rent every month.
Yau also said the subsidy from the government was limited and isn’t enough to support the industry.
He said the government may also consider allowing gyms to open in limited hours so they can have some income.
“We hope to open as soon as possible because it’s so hard to survive if we can’t open for more than three months. I think the cash flow of many gyms and fitness venues is very difficult right now,” he said.
______________________________
Last updated: 2022-03-16 HKT 21:39
