Hotstone Yoga closure losses rise to HK$7.8 million as 694 customers file reports

Losses linked to the abrupt closure of Hotstone Yoga have risen to nearly HK$8 million (US$1 million), with close to 700 reports filed by affected customers in Hong Kong, according to authorities.

The Customs and Excise Department said that as of 6pm on Sunday, it had received 694 reports relating to the yoga chain, involving service contracts worth about HK$7.8 million.

The Consumer Council said it had received 416 complaints by 5pm the same day, with claimed losses totalling HK$5.42 million.

Hotstone Yoga announced on Wednesday that it would cease operations immediately, citing “business operations and other actual circumstances” after “careful consideration”.

The company had operated for more than 10 years.

At its peak, it ran seven studios across the city – in Central, Causeway Bay, Aberdeen, Jordan, Tsuen Wan, Sha Tin and Kwun Tong – offering yoga, dance and fitness classes.

The closure came after some customers said they were still being encouraged to buy course packages days before the company shut down.

Earlier reports indicated that some packages cost as much as HK$29,700 for 180 classes.

Customs launched an investigation into the closure and last Friday arrested a 61-year-old director of the company on suspicion of wrongly accepting payments in violation of the Trade Descriptions Ordinance.

The department said it was examining the company’s financial and operational situation before the closure, as well as whether there had been any unusual sales activity.

In a notice issued through a law firm and posted outside one of its studios, Hotstone said it would pay employees’ September wages and refund class fees for that month by October 5.

However, some customers have expressed doubts about whether they will receive refunds and have sought help from authorities and the Consumer Council.