The amount of money lost following the sudden closure of renowned gym chain Physical Fitness and Beauty has snowballed to HK$113 million ($14.5 million), and the city’s Mandatory Provident Fund Schemes Authority (MPFA) plans to go after the company for unpaid contributions for its 740 employees.

Healthy, a new gym that has taken over the fitness company’s Wan Chai branch, on Thursday reportedly promised to provide services at no extra cost to people holding contracts with Physical Fitness.

The city’s Consumer Council revealed on Thursday night that it had received 3,289 complaints against the gym’s closure, involving a total amount of HK$113 million.

The Hong Kong Customs and Excise Department had received 1,492 complaints relating to the gym chain’s shutdown as of 4 pm on Thursday, and the monetary loss reported to Customs surged from HK$38 million to HK$72 million, after two of the company’s executives were arrested.

The department has contacted more than 500 complainants to further understand the situation, with priority given to those who have recently purchased services from the company.

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The amount of money reportedly lost by complainants ranges from HK$99 to HK$1.8 million, according to Fong Kwun-ting, group head of Unfair Trade Practice Investigation of the Customs and Excise Department.

Fong pointed out that the fitness center was still selling fitness and beauty services and accepting pre-payments from consumers on the day before ceasing operation, potentially violating the Trade Descriptions Ordinance by improperly accepting payments.

On Thursday afternoon, Customs officers searched the Physical Fitness branch in Causeway Bay and seized a batch of documents. The department said that more people might also be arrested as the investigation progresses.

According to the MPFA, Physical Fitness owes contributions and surcharges for about 740 employees for the period from June to August, totaling around HK$4.8 million.

The MPFA plans to file a civil claim with the High Court next week to recover the MPF arrears for June and July for the affected employees.

Lawmaker Tang Ka-piu said on Thursday that data from the Labour Department show that over 600 of the 740 staff members at Physical Fitness have sought help from the government to obtain their unpaid wages, and the back pay for August is estimated to exceed HK$15 million.

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Tang said that Physical Fitness has indicated that new investors will take over the business, but the situation has become increasingly negative. According to Tang, many employees and consumers have asked the government to investigate whether Physical Fitness has really run out of money, or if some funds have been transferred out of the company’s bank account.

Customers say they have spent significant amounts of money in recent months on purchasing the company’s services, and that they hope the authorities will investigate where the money has gone.

The now-defunct gym chain had been operating in Hong Kong for 38 years, offering fitness, yoga, and beauty care courses and services to over 500,000 customers. On Friday, it unexpectedly ceased operations at all its 23 outlets in Hong Kong, leaving customers and employees in limbo.

Contact the writer at atlasshao@chinadailyhk.com