Renowned gym chain, Physical Fitness and Beauty, which has been in business in Hong Kong for 38 years, said on Friday it’s suspending all operations with immediate effect, pending a restructuring.

The chain, with 23 gyms across the city, said a new investor would step in and provide customers with their remaining services for free, and it’s in discussions with landlords about a reopening.

Some consumers took to social media, saying they still have services pending at the gym and hope to recover their losses.

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According to Physical’s website, the company started operations in Hong Kong in 1986. Offering fitness, yoga, and beauty treatment courses and services, the chain had more than 500,000 customers.

It said although the local economy has been improving slowly since the COVID-19 pandemic, some landlords of the company’s outlets had been charging high rents, forcing the chain to suspend operations.

The company said it’s talking to landlords about rerenting the premises involved, and once an agreement is reached, they would promptly resume services. It asked customers to be patient, saying they could make inquiries via email if necessary.

The Mandatory Provident Fund Schemes Authority said on Monday Physical had not made MPF contributions for about 740 employees, or paid surcharges for June and July amounting to HK$3 million.

Local media reported that the company’s founder is believed to have sold several privately owned flats recently for almost HK$27 million.

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Many residents have spoken out online, seeking to recuperate their losses.

A resident surnamed Chan said on Facebook: “I'm a permanent member of this gym. What should I do now?” Another member complained that he still had 21 classes left, while another claimed he had paid more than HK$30,000 for courses last month alone.

There were also calls for collective efforts to recoup customers’ losses.