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.

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.

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.