Yet another F45 gym has collapsed into liquidation, adding to a growing pile of failed franchises involved in the popular fitness chain in recent months.
On Sunday, a Melbourne company called Anthony Cselko Training Pty Ltd went into voluntary liquidation.
The business was trading under the name F45 Training Bayswater North, as it was part of the F45 network.
News.com.au has contacted the appointed liquidators, Garth O’Connor-Price and Christopher Bergin of insolvency firm William Buck, for comment.
F45 Training is an Australian fitness franchise well-known for its 45-minute high intensity interval training (HIIT) classes which were an instant hit worldwide and received backing from Hollywood star Mark Wahlberg.
But the F45 franchise has been struggling in the past year amid an economic downturn and news.com.au has reported on more than a dozen of the privately-owned gyms going bust in Australia in the past six months.
It’s the latest spot of trouble to hit the embattled brand amid multiple class actions from investors, mass board resignations and in a blow from last month, the brand being delisted from the New York Stock Exchange.
F45 had nearly 500 studios across Australia at the start of the year, however, an earlier news.com.au investigation found that 10 per cent of those gyms are actively trying to sell their businesses.
And with the collapse of the Bayswater North franchise, this brings the total number of collapsed gyms to at least 16 in the past year.
F45-branded equipment has been up for sale at incredibly cheap prices as creditors try to recover their losses.
One of these gyms had a large debt of $600,000 owed to creditors, at F45 in Yeppoon, in coastal Queensland.
Gisborne, in regional Victoria, had a F45 studio which was forced to shut down as the landlord locked the business out of the premises over a $125,000 unpaid debt.
Eviction notices were plastered over the door.
One Port Melbourne customer who preferred to remain anonymous was left frustrated after paying $99 for a challenge, only for the gym to close down with signage indicating it owed $163,000 in unpaid rent and utilities to the landlord.
Jane* learnt via email in August last year that her F45 gym in the Melbourne suburb of Werribee was shutting down, as was neighbouring gym Hoppers Crossing, run by the same owners.
But then the mum-of-one’s disappointment switched to outrage when her refund was not forthcoming, despite paying for half a year’s membership upfront, which was more than $1000.
An F45 spokesperson previously told news.com.au that more than 80,000 Australians had joined the brand as members.
“We are one of the largest fitness operators in the country and maintain a supportive and competitive franchise model,” they said.
“We’re proud to be in business alongside our franchisees, and we recognise their success goes hand-in-hand with our own.
“Consistent with this, and in response to pandemic-related challenges, we implemented relief initiatives, including waiving franchise fees, standing up an online platform so studios could operate virtually, and implementing payment plans as studios were able to reopen.”
F45 was founded in Sydney’s Paddington where its first gym was opened by Adam Gilchrist (not the cricketer) and Rob Deutsch in 2012, before expanding into the US in 2015.
In 2019, Hollywood actor Mark Wahlberg’s investment firm and another investor, FOD Capital bought a minority stake in the business.
Mr Deutsch sold his stake for an estimated US$145 million (A$224 million) before the company listed on the NYSE in July 2021.
At that time, its shares were valued at $US16 ($A24.75) and it had a total valuation of US$1.4 billion (A$2.17 billion) but its shares closed yesterday at just US$0.047 (A$0.08), giving the business a total value of a meagre US$3.85 million (A$5.96 million).
The business has been plagued by revenue reporting and accounting errors that ultimately saw Mr Gilchrist depart as CEO in July 2022 along with other key executives and directors.
In a statement the NYSE said: “In the opinion of the exchange, the company’s common stock is no longer suitable for continued listing and trading on the NYSE”.
alex.turner-cohen@news.com.au
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