【Central Decoded】PURE Fitness resolves rental dispute
The rental dispute between the chain fitness and yoga center PURE Fitness and CHAMPION REIT has been resolved. PURE Fitness stated in a declaration that all pending legal actions against the company have been formally withdrawn. CHAMPION REIT had previously sought over HKD 13.586 million in overdue rent and management fees. Colin Grant, CEO of PURE, pointed out that many leases signed before the epidemic have become unreasonable and negotiated fair terms with landlords. All PURE centers are now operating normally
PURE Fitness, a chain of fitness and yoga centers, located in the China Merchants Bank Tower in Central, had its branch taken to court by the landlord CHAMPION REIT (02778) last month for overdue rent, attracting the attention of many fitness enthusiasts in the financial industry. The latest news indicates that the rental dispute has been resolved, allowing PURE's customers to breathe a sigh of relief.
According to Bloomberg, PURE Fitness issued a statement over the weekend stating, "All pending legal actions against the company's leases have now been formally withdrawn."
In August this year, CHAMPION REIT filed a lawsuit in the High Court to recover over HKD 13.586 million in overdue rent and management fees from PURE, and sought compensation. At that time, PURE's Chairman Colin Grant sent a letter to employees, describing many lease agreements signed in the fitness industry before the COVID-19 pandemic as "no longer made sense," and was negotiating "fair terms" with the landlords.
In early September, the branch of PURE in Kwun Tong was also taken to court by the landlord, seeking around HKD 8.49 million in overdue rent and miscellaneous fees, and requesting the premises to be returned. After the news was exposed, PURE immediately issued a statement, indicating that an agreement had been reached with the landlord, who also withdrew the related lawsuits, emphasizing that all centers under its management are operating normally