11th April 2021 – (Hong Kong) Goji Studios, a fitness centre chain, has entered the liquidation process. The group claimed that it has received a fresh round of injections by new investors, and its fitness centres will continue to operate as usual. However, almost 75% of its 500 employees have been dismissed.
Some affected employees said that the management did not make arrangements for the employees’ salaries and payment in lieu of notice. The management only pointed out that the liquidator was responsible for the relevant matters, and the employees were asked to approach the Labour Department for help if they have any questions.
Some employees who were fired claimed that they received an email from the company last Thursday (8th), instructing all employees to return to the company for a meeting yesterday (10th), and claimed that the suspension of business was due to cleaning and checking of the ventilation system of the fitness centres. At the meeting yesterday, nearly three-quarters of the staff were issued dismissal letters. Goji Studios originally had nearly 500 front-line and back-office employees, but only around 100 are left.
The sources continued to point out that at the meeting, the senior management had reassured the remaining employees, claiming that they would continue to expand but both Whampoa and Causeway Bay branches have been closed successively. Many regarded the expansion plan as baseless as the entire customer service department has been dissolved. Even if there are customer complaints and requests for refund, there will be no staff to entertain such requests.
The Labour Department replied that it is concerned about the incident and has reminded relevant employer of their legal responsibilities under the Employment Ordinance. Affected employees who have questions about the Employment Ordinance and their employment rights can call the hotline 2927 6080 for enquiries, or seek assistance from the branch offices of the Labour Relations Division of the Labour Department.
In January, all branches of Goji Studios have been sued for rent claims by the respective owners in 2020. The group has been sued for nearly 20 times, and each time the amount of rent arrears was more than HK$2 million.