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Another Gym closure: TF Gym

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  1. #1

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    Another Gym closure: TF Gym

    TF Gym in Mongkok just closed after running half price membership promotions over Christmas.


    All pain, no gain as another gym closes - The Standard


  2. #2

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    Quote Originally Posted by flameproof:
    TF Gym in Mongkok just closed after running half price membership promotions over Christmas.


    All pain, no gain as another gym closes - The Standard
    All the elements of a classic Hong Kong story - rent price increases driving a company out of business, directors greed and contempt for the law, punters sucked in to something failing the "too good to be true" test... plus the same thing already happened to another business a few months back!

    The directors should be prosecuted for this by the way, trading when you have knowledge the business is not a going concern is a criminal offense.

  3. #3

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    But it is very very hard to prove intent and the prosecutors / investigators here in HK have little motivation for such things.

    UK/HKboy and Kowloon Goon like this.

  4. #4

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    Quote Originally Posted by shri:
    But it is very very hard to prove intent and the prosecutors / investigators here in HK have little motivation for such things.
    If the business was demonstrably not a going concern (which the financials should easily clarify) then it is easy to prove the directors were ripping customers off. The motivation of prosecutors - well, I can completely believe that. I can also easily believe there might be something in for them to look the other way.

  5. #5

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    Quote Originally Posted by TheBrit:
    If the business was demonstrably not a going concern (which the financials should easily clarify) then it is easy to prove the directors were ripping customers off. The motivation of prosecutors - well, I can completely believe that. I can also easily believe there might be something in for them to look the other way.
    But it is the intent that is ambiguous. They can argue they are promoting half-price memberships because they need to get more members (i think most of their costs would be fixed costs since little changes with 100 or 150 members) to bring in revenue to meet costs.

    That they failed to get the 50 extra members to cover those costs is just a risk of any business.

    So basically whether its the act of a business desperately trying to hold on, or a business intentionally duping new customers?
    Last edited by UK/HKboy; 22-01-2018 at 12:54 PM. Reason: extra clarification

  6. #6

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    Quote Originally Posted by UK/HKboy:
    But it is the intent that is ambiguous. They can argue they are promoting half-price memberships because they need to get more members (i think most of their costs would be fixed costs since little changes with 100 or 150 members) to bring in revenue to meet costs.
    Riiight.... it doesn't look like a cynical attempt to snare a few more punters at the last minute before an impending collapse. I guess you gave the staff at the Filapina travel agency that left hundreds stranded before Christmas the same benefit of the doubt?

    The cash flow statements will make it very clear if the business was a going concern or not. Given it folded, I suspect it probably wasn't

  7. #7

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    unless they put in a new promotion, then rip the bank account dry and left, else you can't establish the 'fraud' intent and just end up being a manager that is not too business savvy


  8. #8

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    Quote Originally Posted by TheBrit:
    Riiight.... it doesn't look like a cynical attempt to snare a few more punters at the last minute before an impending collapse. I guess you gave the staff at the Filapina travel agency that left hundreds stranded before Christmas the same benefit of the doubt?

    The cash flow statements will make it very clear if the business was a going concern or not. Given it folded, I suspect it probably wasn't
    Not defending them. being a cynic and seeing so many of these stories, i would be more surprised if that wasn't the intent of the owners.

    But what looks pretty obvious can be hard to prove if they covered their tracks well.

  9. #9

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    Quote Originally Posted by UK/HKboy:
    Not defending them. being a cynic and seeing so many of these stories, i would be more surprised if that wasn't the intent of the owners.

    But what looks pretty obvious can be hard to prove if they covered their tracks well.
    Only if they have been cooking the books. Otherwise it's simple. Were they generating enough cashflow to continue as a business? If not, they should not have been soliciting long term contracts.

    Given they have gone bust, the strong chances are they weren't generating enough cash.

    It isn't hard to prove at all.

  10. #10

    Pls help

    Dear
    I was away from HK. Visited today but heard they are closed. Any idea how can I approach them for refund ?

    Appreciate for your best

    Thanks
    96722065


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