The future of MGK
Manila, 11 June 2022
I would like to apologize for the late reply to many of you.
MGK has not been able to reopen in April, and in the last few weeks, I had to be totally focused on other projects than MGK.
I had to, because these projects include potential new sources of income for me because I have lost everything due to the government’s restrictions with the 5th Covid wave.
This trip is not a holiday. And of course I did not steal the gym’s money and used it to go on holiday !
It’s a French political campaign. I was campaigning in all Asia for French expats to vote for me in the French legislative election
More info : Guyon 2022 ! (marcguyon2022.fr)
The whole campaign cost is funded by donations and from French campaign budget. Every candidate has a maximum budget to use for the political campaign, funded by French public funds.
I am not allowed to pay anything myself during the campaign, no hotel, no flight ticket, no meeting room.
Contrary to what many people seem to think, I am not a serial entrepreneur with a lot of capital, who can open several gyms, close them, and live off his savings, without any steady income.
I want to be totally transparent with you.
Everything done recently was done thanks to investors, and not only am I currently with no more income to afford basic life expenses, but I am also with huge debts.
But I know times will be back to normal sooner or later, and I want to thank everyone for the experience so far.
Thanks a lot, to all members for your amazing support, trough the last few months and even years.
We have built and incredible community, I will remember all my life.
Everything was going well until the 4th and 5th Covid waves.
When we opened the MGK Fight Club shop in the mall in September 2020, we quickly built up a big and good community of members. Classes were full and sometimes too crowded, with almost 30 kids per class.
When came the 4th Covid wave in December 2020, it was a huge blow; but thanks to our successful opening and the support of members, we managed to find investors and to overcome that 4th wave.
MGK then enjoyed a slow but steady growth through most of 2021, except the failed attempt to open an additional location in Central.
When came the 5th covid wave early 2022, knowing that gyms would be closed until April, we did our best to survive.
We kept classes in private locations, until gathering in private premises became also illegal.
From that moment, it was clear that only support from the landlord could help us continue business.
I was confident we could negotiate with the landlord and not pay the months of closure, but our landlord HKRI decided otherwise.
When gyms were allowed to reopen late April 2022, it was clear that we could not reopen without paying the rent to our landlord.
It’s only late April that we received a formal letter from the landlord’s lawyer that it became clear to us that the company was out of business.
Therefore, it had become impossible not only to pay the rent, but also our different suppliers and refund our members.
Apart from the financial aspect, it was also almost impossible to reopen MGK Fight Club due to coaches and members who had left Hong Kong.
The drastic restrictions from the Hong Kong government and the uncertainty in doing business in this industry have made it impossible for us to find additional fundings.
When we look at what happened in Shanghai with the complete lockdown, few investors can reasonably decide to inject funds in this project and bet that the same situation could never happen in Hong Kong.
Finally, the traditional gym industry calendar does not favour a reopening in April. We relied heavily on January 2022 to grow, believing Covid was behind us. We were wrong.
I am now targeting to start new group classes ASAP, with a regular schedule from August, in the traditional back to school period.
Currently stuck outside Hong Kong due to being positive to Covid, I hope to fly back to Hong Kong ASAP.
To all members who had a deposit, or paid upfront, sometimes took a 3-month package (January-March), I want to thank you for your support. Unfortunately, it was not sufficient to save the gym, and MGK does not have any cash to make any refunds.
However, as soon as I am back, I will start over again, and former MGK members will be welcome in the new project, with their credit balance they will be able to use.
I still must work on a lot of data to reconcile all information.
Some of you have written to me to claim a refund, although MGK cannot afford it and neither can I personally, I will do my best to deliver the services, or to arrange a refund from the new company when it is possible.
Some of you have not written to me although you are also entitled to have a refund. It may be because you know the trouble we are in and you wish to keep supporting MGK, and I thank you for that. Nevertheless, I will also come back to you and arrange a compensation ASAP.
MGK has been an amazing experience and I want to thank everyone, members, coaches, investors, and business partners.
I am looking forward to seeing you again soon, hopefully in an upcoming successful project.