Hotstone Yoga customers report HK$7.8m in losses after sudden closure

Reports linked to the sudden closure of Hotstone Yoga in Hong Kong now involve service contracts worth about HK$7.8 million, authorities said on Sunday. The Customs and Excise Department said it had received 694 reports by 6pm. The Consumer Council separately reported 416 complaints by 5pm, involving claimed losses of HK$5.42 million.

Hotstone Yoga announced on Wednesday that it was ceasing operations immediately. The company attributed the decision to its business operations and other circumstances after what it described as careful consideration. The chain had operated for more than 10 years and, at its peak, ran seven studios in Central, Causeway Bay, Aberdeen, Jordan, Tsuen Wan, Sha Tin and Kwun Tong.

It offered yoga, dance and fitness classes. Some customers said they had been encouraged to buy course packages only days before the closure. Earlier reports said some packages cost as much as HK$29,700 for 180 classes.

Customs launched an investigation and arrested a 61-year-old company director last Friday. The director is suspected of wrongly accepting payments in breach of the Trade Descriptions Ordinance. Investigators are examining the company’s financial and operational circumstances before the closure, including whether unusual sales activity took place.

In a notice issued through a law firm and posted outside one studio, Hotstone said it would pay employees’ September wages and refund class fees for that month by October 5. Some customers have questioned whether refunds will be paid and have sought assistance from Customs and the Consumer Council. The material does not state whether the company has resumed operations or whether further arrests have been made.