Fernwood Loganholme gym owner Busterboo goes bust with $1m debt
It has hundreds of members, but mounting debts has forced a popular gym on Brisbane’s southside into liquidation. The national brand says it will work quickly to find new owners.
QLD Business
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A POPULAR Loganholme gym with about 1300 female members has been placed in liquidation after a restructure failed to trade itself out of debt.
Busterboo Pty Ltd trading as Fernwood Fitness Loganholme has gone into liquidation after spending exactly three months under administration.
Administrator David Ingram recommended to creditors the company be placed in liquidation, with the director unable to secure re-financing of the business.
Five secured creditors are owed $803,350, according to the administrator’s report.
Six employees are owed $29,824 and seven unsecured creditors are chasing $263,084.
How much is returned to creditors has not yet been determined and the club remains open.
A spokeswoman for Fernwood said despite the liquidation the Loganholme club remained a “buoyant and successful business”.
“Fernwood (as the franchisor), is currently assisting administrators with the sale process,” she said.
“There are already a number of interested buyers who have been approved by Fernwood, with finalisation of new management expected in the near future.”
One offer to purchase the business was rejected when the company was in administration.
About 10 employees work at the club, five of those are full time.
In August 2018 the company owed $593,479 to the Australian Tax Office in unpaid taxation and superannuation dating back to June 2012.
The ATO applied to wind up Busterboo in September 2018.
The company took a $243,461 loan with Magnolia Capital in February this year to pay the tax office.
The spokeswoman said Fernwood had a long-term future in Loganholme, with a head lease on the property signed until 2027.
“We therefore look forward to working with new franchisees in continuing to provide a wonderful exercise and wellness space for the women of Loganholme,” he said.
In October dozens of businesses were placed into liquidation.
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