Jump! Swim Schools: Liquidators appointed to Ian Campbell-led Coast company

Liquidators have been appointed to the parent company of a Gold Coast-based swim school franchise network.

Ian Campbell is the sole director for Swim Loops Holdings Pty Ltd, which has gone into liquidation.

LIQUIDATORS have been appointed to the parent company of Gold Coast-based Jump! Swim Schools following a court order.

Adam Ward, of Worrells, was appointed liquidator to Swim Loops Holdings Pty Ltd on Monday following an order from the Supreme Court in Brisbane.

It came after an application to wind up the company by UK Enterprise Pty Ltd, linked to Sagar Shah and Unnatiben Joshi, of Brisbane.

Swim Loops Holdings is understood to own the intellectual property for the Jump! Swim Schools franchise business and owns franchisor Jump Loops Pty Ltd.

Ian Campbell is the sole director for Swim Loops Holdings Pty Ltd, which has gone into liquidation.

SUBSCRIBE TO THE BULLETIN FOR $1 A WEEK FOR THE FIRST 12 WEEKS

Both companies, along with director Ian Campbell, are the subject of a Federal Court case by the Australian Competition and Consumer Commission, which in June alleged they made false, misleading or deceptive statements about swim school franchises, in breach of the Australian Consumer Law.

The watchdog last month obtained a Federal Court order freezing the assets of Swim Loops Holdings and Jump Loops and Mr Campbell and requiring them to disclose details of their financial position.

It is understood Mr Campbell will defend the case brought by the ACCC.

Yesterday, a spokesman for the ACCC said it intends to apply to the court for leave to continue proceedings against Swim Loops Holdings despite appointment of liquidators.

Mr Campbell is understood to be planning to defend the case brought by the ACCC.

JOBS IN JEOPARDY AS COUNCIL LOOKS TO BAN POPULAR VENUE

The ACCC has alleged the Swim Loops Holdings and Jump Loops made representations in its promotional material that a prospective franchisee would have an operational swim school within 12 months of signing a franchise agreement, when it did not have reasonable grounds for making that statement.

Lawyers for the franchisees said many paid more than $100,000 each for a franchise and had waited more than a year without the franchise being delivered.

The ACCC is seeking injunctions, declarations, pecuniary penalties, redress for franchisees, disqualification orders, an order as to findings of fact, and costs.

Jump! Swim Schools, which had more than 60 locations across Australia including nine in Queensland, vacated its head office at 50 Cavill Ave after landlord GDI Property Group terminated its lease agreement last month.

Gold Coast-based Jump! Swim Schools spread rapidly to 60 schools around Australia. Founder. Ian Campbell pictured at the Bundall facility with kids and teachers Sarah Schmith and Serena Proietto. Picture: Richard Gosling

GIANT CRANE TO RISE OVER MILLIONAIRES' ROW

The company’s website notes it is “currently relocating premises” and calls to its landline went straight to voicemail. Mr Campbell could not be reached for comment.

The ACCC action has not targeted Swim Loops Pty Ltd, which was the franchisor for Jump! Swim Schools between 2012 and 2016, and went into voluntary administration in May.

It was also the previous owner of the IP and trademark for the schools before it was transferred to Swim Loops Holdings.

A June report from administrator Glenn O’Kearney, of GT Advisory, notes that the Jump Swim operations were restructured in 2016 to separate the business functions into different entities.

Jump Loops was established to take over as the franchisor for all new franchise agreements.

The administrator’s report goes on to say that Swim Loops had 43 trading franchises and 38 leases in connection with those sites with the remaining leases held by franchisees directly with the landlord.

Mr O’Kearney wrote he understood Swim Loops would sell franchises and take an upfront fee, part of which related to construction of new premises. He said he was aware that from 2016 nine franchisees had no site delivered despite paying the franchisee fees.

Swim Loops is currently being sold to BK’s Gym & Swim Pty Ltd, a subsidiary of multibrand investment company, Belgravia Group. BK’s Gym & Swim entered an agreement earlier this month to purchase the company for an undisclosed amount.

Kat Hughes, who runs the Jump! Swim Schools Bundall franchise, said she was waiting to hear the outcome of the sale to the Belgravia subsidiary.

Ms Hughes said she was unconcerned by the drama at the parent company and franchisors. “Nothing has changed for us as far as I’m aware,” she said.

“We’re a successful independent swimming school with 500 kids on our books.”