Media reports advise of multiple closures of F45 gyms

October 20, 2023

Reports across multiple mainstream media outlets are advising of closures of F45 Training locations across Australia, citing the slide of the Sydney-founded business that as of its listing on the New York Stock Exchange in June 2021 was worth US$1.5 billion.

Over recent days, News Limited, Mail Online and 7News have each reported on of F45 gyms closing, entering administration or with franchises up for sale.

Among the closures, The Opulent Group, one of F45's biggest franchisees, has shut down at least five gyms in Sydney, four in the southern suburbs of Kogarah, Kirrawee, Caringbah and Miranda, and one in Balgowlah, on the northern beaches.

With F45 outlets in the NSW Illawarra including in Bulli and Corrimal, as well as Zetland in Sydney, having closed earlier this year, F45 Training Parramatta CBD in NSW, F45 Training Bayswater North in Melbourne and F45 Training Devonport in Tasmania are reported by 7News as being set to close.

New Ltd advised that Melbourne-based company Anthony Cselko Training Pty Ltd, trading under the name F45 Training Bayswater North, went into voluntary liquidation as of last Sunday.

While F45 had nearly 500 studios across Australia at the start of the year, reports speculate that 10% of those locations are actively trying to sell their businesses while other franchises are facing the realities of closure.

F45 in Yeppoon, Queensland owed creditors $600,000 while a studio in Gisborne, in regional Victoria, was forced to shut down as the landlord locked the business out of the premises over a $125,000 unpaid debt.

Linked to the closures F45-branded equipment has been offered for sale through e-commerce site at cheap prices. Facebook Marketplace lists items including kettlebells, benches and dumbbells for as low as $3.

While F45’s USA-based operations have endured board resignations and restructuring and multiple class actions from investors, with the brand being delisted from the New York Stock Exchange, its troubles in Australia are understood to be based on saturation, high franchises fees and a failure to innovate in a competitive marketplace.

F45's recently appointed Chief Executive Tom Dowd last month told Daily Mail Australia that the business was not unduly concerned about reducing their network, advising “we are prepared to shrink to grow.”

Dowd added “closing unproductive locations to add value to existing studios strengthens our system.

“An important aspect of our real estate strategy is to avoid over-saturation.”

An F45 spokesperson previously told News Ltd that more than 80,000 Australians had joined the brand as members, stating “we are one of the largest fitness operators in the country and maintain a supportive and competitive franchise model.”

Images courtesy of Shutterstock.

18th August 2023 - F45 moves to pull its shares from the New York Stock Exchange

16th May 2023 - F45 reaches 10 years of operations

31st March 2023 - F45 announces leadership changes with Mark Wahlberg named Chief Brand Officer

27th March 2023 - 10% of Australia’s F45 studios up for sale

22nd March 2023 - F45 launches new one-day only workout class inspired by Netflix’s Wellmania series

3rd March 2023 - Media advises of closing of F45 studios as founder reportedly being chased for $10 million by creditors

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

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

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

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

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