Business Hong Kong Law & Crime

California Fitness parent firm to offer up to HK$8,000 per employee for owed wages

J.V. Fitness Limited, the parent company of troubled gym California Fitness, has announced that it intends to hand out up to HK$8,000 each to all of its employees as part payment for owed wages.

This also includes employees working for fitness gyms mYoga and Leap. However, the gym first has to seek legal advice on the matter, and the staff will be notified later when the arrangements are confirmed.

california fitness

California Fitness. File photo: Stand News.

All of the branches under the gym have ceased operation. As of Thursday, the Consumer Council had received 1,206 enquiries and 532 complaints on the matter.

The court appointed Shinewing Certified Public Accountants as the provisional liquidator last week. The firm is currently arranging for all the employees and members of the gyms and yoga centres to collect their personal belongings at the branches, Ming Pao reported.

See also: ‘I am a victim’: California Fitness investor shows document suggesting gym was in financial trouble

tang ka-piu

Tang Ka-piu. Photo: Apple Daily.

Hong Kong Federation of Trade Unions lawmaker Tang Ka-piu, who has been helping the employees, said that he contacted the liquidator on Friday, but it has not provided any details on when the HK$8,000 would be paid, or whether it would meet with or lay off the staff.

Tang said that the amount was “better than nothing,” and most of the employees were owed much more than this amount in wages. He also said that California Fitness still had around HK$16m in capital and was capable of paying wages owed to the staff, which amounted to around HK$6m.

California Fitness parent firm to offer up to HK$8,000 per employee for owed wages