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The Star
06-06-2025
- Business
- The Star
Hong Kong branch of Singaporean 1880 club in liquidation with HK$20 million debt
The Hong Kong branch of a Singapore-based private club that closed after less than a year in business is undergoing liquidation with debts of about HK$20 million (US$2.5 million), former employees have said. Financial difficulties forced 1880 Hong Kong, located at Two Taikoo Place in Quarry Bay, to shut its doors on Friday last week, leaving 100 employees without pay for two months and some members angered by sales made shortly before the closure. It also owed rent to its landlord, Swire Properties. Two former employees told the Post on Tuesday that the cash-strapped club had gone into liquidation, blaming the failure on the company's poor financial planning and governance. Both said that the landlord made a substantial capital investment in the fixed assets, while the club only had to take care of operations. One said that Swire's capital investment amounted to more than HK$170 million. The club, which opened on November 8 last year, occupied four floors offering event spaces, a gym with spa facilities, four restaurants, a cocktail bar and a sports bar. Each member had to pay a joining fee of about HK$24,000 and a monthly subscription fee of HK$1,300, or HK$14,000 for a full year, according to the founding member rates seen by the Post. 'Still, the company could not run the club properly because it did not understand how Hong Kong works and did no due diligence. It just assumed the city was going to be the same as Singapore,' one middle-ranking employee said. 'It was suffering from cash-flow problems from day one.' He said the senior management made a string of poor decisions, including hiring more than a dozen staff members for each of their five kitchens long before the restaurants opened and ordering tens of thousands of cake packaging materials for an eatery that did not sell cakes. 'But when an employee at a lower rank tried to speak up, they did not listen,' he said. 'November was the last month I received my salary on time.' The company had not managed to pay all of its staff on time since December last year, with the landlord returning a deposit at one point to help it pay wages, but priority was given to junior employees. He also said the club had struggled to pay its suppliers since February and had asked to settle the payments in instalments. But it failed to honour the arrangement, placing immense pressure on frontline staff, he added. 'In the end, we were only paying those whom we desperately needed to keep the club in business,' the middle-ranking employee said. In the first week of May, founder Marc Nicolson held a town hall meeting to reassure all staff that a 'very big investor' was coming to save the business, he said. Despite being in a dire financial situation, the club kept recruiting new members, with the last one joining in mid-May, just about two weeks before the closure. The same employee said the company's Singaporean leadership had sent in support before the opening in November, but they stopped in January this year. He said he believed the company still owed staff members about HK$4 million in unpaid wages and around HK$15 million to suppliers and its landlord. Another employee, who was transferred from Singapore to the Hong Kong club in August, said he was owed more than HK$100,000 in unpaid wages dating back to April, as well as payment in lieu of notice. Comparing the operation of the clubs in Singapore and Hong Kong, he said the one in the city state had a much smaller floor area but was exclusive to its 2,000 members. But the Hong Kong branch had a larger floor size and was partly open to the public, making it far less attractive to sign up as a member. He said that all the restaurants had failed to hit their targets, even after a downward adjustment, with the amount being made by the food outlets 'definitely below HK$1 million monthly'. He also said the company did not pay suppliers for months, and they had only accepted cash on delivery since March. 'I just pray they find the money to pay the staff because they really believed in the company, even when wages were delayed for weeks and came to work until the last day. Some of us even took a loan to come to work,' he said. 'They could have been honest about it and told us the truth in the last two, three months ... it's really unethical for them to do this.' He said that returning to Singapore was difficult because it would mean breaking his lease and losing his deposit. The head office would not cover his loss either because he had signed a new contract with the Hong Kong branch, he added. The group previously announced plans to expand to Bali, with the construction of a resort largely completed before the project was shut down late last year. A spokeswoman for Swire said the landlord was unable to disclose any financial details related to specific tenants. Hong Kong's Labour Department and the Customs and Excise Department said they had received complaints and were following up on the matter. The Consumer Council said it had yet to receive any complaints related to the club. The Post has reached out to the club and its founder for comment.
South China Morning Post
05-06-2025
- Business
- South China Morning Post
1880 Hong Kong members offered alternative club, but ‘not what we signed up for'
Members of 1880 Hong Kong, a Singapore-based private club that recently shut down after only seven months in operation, have been offered a luxury lifeline by landlord Swire Properties. Advertisement The club told members on Thursday that they would be able to have joining fees waived for The Refinery, a club in Swire's Taikoo Place that is operated by The Peninsula, and a food and drink credit would be provided. But the announcement did not appear to have pacified members, with some preferring a refund of their original joining and subscription fees. Some said they no longer trusted the company and had not given their consent to join the alternative club, which was 'not what we signed up for'. 1880 Hong Kong's email to members on Thursday did not mention whether they would have to pay subscription fees for access to the luxury Swire-owned club. A member at The Refinery told the Post that her joining fee in 2021 was HK$50,000 (US$6,370) and the monthly subscription was HK$1,800, after a tenant discount. Advertisement The email asked members to contact The Refinery directly to accept the offer of full membership.
South China Morning Post
05-06-2025
- Business
- South China Morning Post
How can consumers avoid being burned after collapse of Singaporean 1880 club in Hong Kong?
The Hong Kong branch of a Singapore-based private club has proceeded with liquidation with debts of about HK$20 million (US$2.5 million), following its abrupt closure after just seven months in business. Advertisement The Post unpacks the potential pitfalls of joining a private club and what consumers should do to protect themselves. 1. What's happened to 1880 Hong Kong? The private club, located at Swire Properties' Two Taikoo Place office complex in Quarry Bay, on Friday announced it was closing, citing 'cash flow difficulties' and failed attempts to raise funds. All memberships and associated privileges were discontinued. The move has left 100 employees without pay for two months and some members angered by sales made shortly before the closure. The company is believed to have owed staff members about HK$4 million in unpaid wages and around HK$15 million to suppliers and its landlord, Swire Properties, which has repossessed the premises. The club, which opened its doors on November 8 last year, occupied four floors offering event spaces, a gym with spa facilities and several restaurants. The sudden closure of 1880 Hong Kong club has left 100 employees without pay for two months. Photo: 1880 Each member had to pay a joining fee of around HK$24,000 and a monthly subscription fee of HK$1,300, or HK$14,000 for a full year, according to the founding member rates seen by the Post.
South China Morning Post
04-06-2025
- Business
- South China Morning Post
Hong Kong branch of Singaporean 1880 club in liquidation with HK$20 million in debts
The Hong Kong branch of a Singapore-based private club that closed after less than a year in business is undergoing liquidation with about HK$20 million (US$2.5 million) of debts, former employees have said. Financial difficulties forced 1880 Hong Kong, located at Two Taikoo Place in Quarry Bay, to shut its doors on Friday last week, leaving 100 employees without pay for two months and some members angered by sales made shortly before the closure. It also owed unpaid rent to its landlord, Swire Properties. Two former employees told the Post on Tuesday that the cash-strapped club had gone into liquidation, blaming the failure on the company's poor financial planning and governance. Both said that the landlord made a substantial capital investment in the fixed assets, while the club only had to take care of operations. One said that Swire's capital investment amounted to more than HK$170 million. The club, which opened on November 8 last year, occupied four floors offering event spaces, a gym with spa facilities, four restaurants, a cocktail bar and a sports bar. Each member had to pay a joining fee of around HK$24,000 and a monthly subscription fee of HK$1,300, or HK$14,000 for a full year, according to the founding member rates seen by the Post.
South China Morning Post
01-06-2025
- Business
- South China Morning Post
1880 Hong Kong club folds after 7 months, accused of owing staff unpaid wages
The Hong Kong branch of a Singapore-based private club, which recently closed its doors after only seven months of operation, has been accused of owing rent and more than 100 employees unpaid wages since April, with the Labour Department receiving requests for help from affected workers. 1880 Hong Kong, located at Swire Properties' office complex Two Taikoo Place in Quarry Bay last Friday announced its immediate cessation of operations, citing 'cash flow difficulties' and failed attempts to raise funds. All memberships and associated privileges were discontinued. The landlord told the Post that 'rent and other arrears' were still owed but declined to disclose more details due to confidentiality concerns. They have repossessed the premises. The club, which only opened its doors on November 8 last year, occupied four floors offering event spaces, a gym with spa facilities, and several restaurants. In an internal letter seen by the Post, founder Marc Nicolson apologised to his employees for the closure, saying the 'deal' they had been trying to close had been unsuccessful. He said he asked employees to trust him and continue working, as he believed he could raise the capital to save the company.
