Media advises of closing of F45 studios as founder reportedly being chased for $10 million by creditors

March 3, 2023

A series of media reports over recent days have advised of the closure of F45 training gyms across Australia leaving members of out of pocket due to unused memberships.

Yesterday saw the Ticker News website advise that “at least 11 Australian F45 training gyms have ceased operations” with franchisees falling into liquidation.

As of 22nd February, the News Corp Australia Network reported that “a number of (franchisees) have gone into liquidation while gym equipment is being sold incredibly cheaply online in a sign of the business struggling to stay afloat.”

The gym equipment branded with the F45 logo is being sold at knockdown prices on Facebook Marketplace.

Founded in Australia, F45 currently has almost 500 franchised studios across the country operating its functional high intensity interval training (HIIT) classes that takes place in 45 minutes.

While its international growth saw it listed on the New York Stock Exchange in 2021, the past year has seen the fitness empire struggling.

On 9th September last year, the F45 franchise in the central Queensland town of Yeppoon went into liquidation, with Michael Beck of Worrells insolvency firm appointed as the liquidator.

Just a month later, a Melbourne F45 branch in the suburb of Sunshine also went under.

Peter Malone of CRS Insolvency, was the appointed liquidator, and a company spokesperson advised News Corp that the company ceased to trade in March last year.

Liquidator of the Mount Barker establishment, Stephen James of BCR Advisory, told News Corp that the business was hit by declining member numbers which “the owner tried but couldn’t turn around”.

Subsequently, studios in South Yarra and Port Melbourne have had winding up applications taken against them.

Both are understood to owe debts to Bizcap AU, a small business loan service, which lodged the winding up application in court.

As of yesterday, News Corp reported F45 members struggling to get refunds from closed studioes while News Corp today ran a news item with the headline 'F45 gyms collapse: Your refund rights and if you’re eligible'.

Today’s news item went on to report on landlords being owed hundreds of thousands of dollars by F45 franchisees.

At the end of February, three prominent board members of the group’s board resigned - Travel Chief Executive Vanessa Douglas, Canstar Chief Technical Officer Angelo Demasi and sports lecturer Lee Wallace.

‘F45 founder Adam Gilchrist owes millions to creditors’
Last week, Daily Mail Australia reported that a range of creditors were chasing F45 co-founder Adam Gilchrist for $10.8 million in the Federal Court.

A seizing order filed by creditors in the Federal Court included an application to freeze Gilchrist’s assets including his luxury cars, beachfront properties and a $6 million Brett Whitely painting frozen.

Court documents obtained by Daily Mail Australia listed Gilchrist's Porsche Speedster 911 and Porsche Panamera.

Gilchrist was Chief Executive of F45 until he stepped down in July 2022 in the wake of losses on the New York Stock Exchange.

Images: There are almost 500 F45 studios in Australia (top and middle), F45 investor Mark Whalberg and F45 co-founder and then Chief Executive Adam Gilchrist on the New York Stock Exchange in July 2021.

19th January 2023 - F45 launches first ever Australian brand campaign

5th January 2023 - US lawyers remind shareholders of opportunity to participate in class action against F45

21st November 2022 - Chief Financial Officer Chris Payne leaves troubled F45

6th October 2022 - Reports suggest that F45 shareholders Mark Wahlberg and Adam Gilchrist look to take the business private

16th August 2022 - Loss of confidence sees mass cancellation of F45 franchise sales

12th August 2022 - F45 co-founder’s Reunion Training business enters administration

29th July 2022 - Outgoing F45 Chief Executive Adam Gilchrist looks back on goal to ‘change people’s lives by creating the world’s best workout’

27th July 2022 - F45 Training announces layoffs for almost half its corporate staff after revealing projected revenue fall

8th July 2022 - F45 Training partners with education organisations Onfit Training College and ISSA

1st July 2022 - Canstar Blue again rates F45 for delivering highest levels of customer satisfaction among Australian gyms

21st June 2022 - F45 caught trademarking Bodyfit name after Federal Court loss

15th February 2022 - F45 loses legal battle with Body Fit Training over workout patents

3rd December 2021 - F45 announces Vive Active acquisition and 24% growth in last quarter

3rd November 2021 - What is driving the financial success of F45, Body Fit Training and Fitstop?

23rd August 2021 - Co-founder of F45 launches new fitness franchise, REUNION Training

16th July 2021 - New York Stock Exchange listing sees F45 valued at more than US$1.5 billion

7th July 2021 - F45 Training moving towards New York Stock Exchange listing with potential US$1.5 billion valuation

15th January 2021 - F45 Browns Plains confirms that it no longer employs convicted trainer

21st December 2020 - F45 ends listing plans but keeps up legal action against competitor Body Fit Training

3rd January 2015 - Updated franchise industry code of conduct now in force

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