(Bloomberg) -- A Hong Kong gym chain frequented by the city’s financial elite said it has amicably resolved a dispute with its landlord over alleged missed rent payments.
“All pending legal proceedings against Pure club leases have now been formally withdrawn,” a representative for the group said in a statement on Saturday.
Champion REIT had sued Pure Fitness for missed payments of rent and management fees of HK$12.7 million ($1.6 million) excluding interest at its facilities in ICBC Tower in the central business district, a court filing showed last month.
Founded in 2002 as a yoga studio in Hong Kong, Pure Group has 42 facilities globally, according to its website. The gym operator, which tends to lease large spaces in premium locations, is facing growing competition from smaller, more specialized studios that can better keep a lid on costs.
Champion REIT is among landlords in Hong Kong that are struggling with rising office vacancies and sluggish demand for retail space as the financial hub’s allure fades.
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