Latest News

Back to Latest News back


Report reveals JUMP! swim school’s entity had ‘poor budgeting control’ and owes millions

Report reveals JUMP! swim school’s entity had ‘poor budgeting control’ and owes millions
June 24, 2019

A failed arm of the JUMP! Swim Schools group may have been trading while insolvent for close to three years, according to an administrators report.

In a report to creditors released last week and seen by media outlets, it was estimated that Swim Loops Pty Ltd owed unsecured creditors $15.2 million. Of that, some $13.3 million was owed to six companies also related to Jump.

Glenn O'Kearney of GT Advisory was appointed as administrator to the business on 21st May, sparking concerns from Jump Swim franchisees that the administration may affect funds they were chasing for swim school franchises they had purchased but had not been built.

Jump Loops Pty Ltd, the company which holds newly-made franchise agreements, is owed $10 million. The administrators' report says between March 2016 and May 2019, it appears Jump Loops had "funded a significant proportion of (Swim Loops) loss-making operations".

The report advised that it appeared the company's financial position "can be largely attributed to a lack of working capital and poor budgeting control in relation to both revenue and expenses.”

From the 2013 financial year onwards, Swim Loops had accumulated losses of more than $10 million.

O'Kearney's report says while pinpointing insolvency would require further investigation, Swim Loops could have become insolvent as early as 30th June 2016.

Several transactions made by Swim Loops were also flagged as potentially uncommercial, making them subject to further review by a liquidator.

In or around March 2016, Swim Loops sold JUMP! Swim Schools intellectual property to a related entity for $1. Additionally, the company also transferred six corporate-operated swim schools to a related entity for an amount equal to the fit-out cost.

With Ian Campbell the sole director of Swim Loops, the administrator's report says it is possible the director would be liable for an insolvent trading claim but notes his financial position may affect any further investigations into whether this is the case.

No charges have been laid against Campbell, and the administrator's report notes that it would ultimately be for liquidators to decide whether to pursue any such allegation in court if they felt it was warranted.

A Jump Swim spokesman said the company had been audited every year and received a "statement of solvency" which would provide a defence for directors.

The administrator has only formed a preliminary view on potential insolvent trading and has clearly disclosed this would require further investigation.

The spokesperson said the company had approximately $2 million in debts to third-party creditors outside of those owed to related Jump entities.

The Jump spokesman said the company would also be defending recent action brought against it this week by the Australian Competition and Consumer Commission alleging it misled franchisees in its advertising.

Investigation revealed that since the administrator’s appointment, several steps have been implemented to cut down on expenses.

Specifically, JUMP!’s staff numbers have reduced drastically from 25 to 12, with the group leaving head office premises and cutting monthly overheads by more than half.

When confronted by a television crew from Nine Network’s A Current Affar last week, Campbell ran away.

Images: Jump founder Ian Campbell after being named Australian Emerging Franchisor of the Year in 2016 (top) and running from Nine Network’s A Current Affair last week (below).

Related Articles

18th June 2019 - Jump! Swim Schools faces court over ACCC claims it misled franchisees

14th June 2019 - Federal Court freezes JUMP! Swim Schools assets as ACCC seeks $4 million in refunds for franchisees

4th June 2019 - Jump! Swim Schools representatives Swim Loops enters voluntary administration

15th March 2019 - Senate report says Australian franchising activities requires drastic overhaul

9th January 2019 - Jump! Swim School responds to media reports of dissatisfied franchisees

8th January 2019 - Media slam Jump! Swim Schools over dissatisfied franchisees

12th May 2016 - Jump! Swim Schools team with water safety advocate Laurie Lawrence

Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.


supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Centaman Entrance Control

Turnstile Entry Systems and Access Control Centaman Entrance Controls’ Award Winning Range of Access Control Systems includes tripod & triarm turnstiles, speedgates, full height…

read more

Access / Entertainment / Sport / Ticketing / Venues


Life Fitness

Life Fitness Cardio Life Fitness Strength Hammer Strength Group Cycling Rowers Certified Refurbished Freeweights Benches & Racks Flooring Life Fitness is the global leader in the fitness…

read more

Fitness / Recreation / Technology / Wellness



Technogym is the leading company in the Wellness and Fitness field all over the world. With 2,200 employees, 14 branches in Europe, U.S., South America, Asia  and Australia, Technogym exports its…

read more

Fitness / Technology / Wellness



Quayclean are a national cleaning and waste services partner with proven results in the understanding and delivery of cleaning needs and challenges faced by facilities including; major venues and…

read more

Aquatics / Hospitality / Surfaces / Venues



As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd.  19th July 2018 - ENTA AUSTRALASIA REBRANDS AS VIVATICKET 17th October 2016…

read more

Attractions / Entertainment / Sport / Ticketing / Venues


Endeavour Turf Professionals Pty Ltd

ETP Turf is a leading Australian specialty agronomic turf consultancy that supply a wide range of services and solutions for the professional turf market, Councils and sporting facilities. Our range…

read more

Consultants / Environment / Golf / Recreation / Sport



Myzone is the industry’s leading wearable technology solution. Myzone’s wearable products show and reward effort when you work out. It displays accurate real-time heart rate, calories, and…

read more

Fitness / Sport / Technology / Wellness


iDwala Pty Ltd

iDwala is the Community Sports Surface Specialist offering the highest quality designs and technical expertise to Councils, Schools and Sporting Clubs looking to create sporting…

read more

Consultants / Design / Recreation / Sport / Surfaces


get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business