Staff at California Fitness unlikely to receive unpaid wages

On Monday, a former gym employee confirmed that he had received the “better than nothing” compensation but is pessimistic that he will receive the rest of his unpaid wages.

“The HK$8,000 cheque has been received. But I have no high hope about getting the outstanding salaries. I hope the government can speed up its work and grant us payments under the Protection of Wages on Insolvency Fund.” the employee who declined to disclose his name told the South China Morning Post.

Provisional liquidator for the troubled gym accountancy firm ShineWing confirmed that company owes more than HK$100 million to former members and employees and is still looking for buyers.

Speaking with members of the press, Terry Kan Lap Kee, from ShineWing said a total of HK$4.4 million were given to about 500 former employees earlier, with each being given HK$8,000.

JV Fitness, the parent company of California Fitness, had about 64,000 members and 700 employees before it closed down last month.

Kan said the chain’s members, as unsecured creditors that did not hold security, their pre-paid membership fees were unlikely to get a refund. He added that paying former-employees their wages would be give priority in case the firm manages to deal with the debts.

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