Two F45’s collapse as gym’s woes continue

The once world-beating fitness chain continues to struggle in Australia with the collapse of two more franchises..

The once world-beating fitness chain continues to struggle in Australia with the collapse of two more franchises coinciding with a visit from its A-list Hollywood investor Mark Wahlberg.

DRX Fitness, which traded as F45 Training Alexandria operating a franchise in Sydney’s inner-east called in liquidator Graeme Beattie of Worrells on February 26, while on March 13, liquidators Nicholas Giasoumi and Shane Deane from Dye & Co were appointed to oversee the liquidation of Lado Pty Ltd, which formerly traded as F45 Traralgon, operating a gym franchise in Victoria’s south east.

F45 Training Alexandria’s owner and director Damian Abson. Picture: Supplied

According to Mr Beattie’s report to creditors, the Alexandria business was insolvent and was put into liquidation by owner and director Damian Abson because it couldn’t pay its debts.

It had cash in the bank of just $1,486 while its debts totalled more than $95,000, with over $39,000 owed to staff in the form of wages and superannuation contributions.

An additional $56,408 is owed to trade creditors, with $17,000 of that owed to business finance company Lumi Finance.

Tax debts that may be owed to the Australian Taxation Office are still being assessed, according to the report.

The F45 gym in the regional Victorian town of Traralgon has also collapsed. Picture: Supplied

Mr Giasoumi told news.com.au that the owners and directors of the Traralgon gym, Matthew La Frenz and Nicholas Dowse also decided to close operations “before the hole got too deep”.

He described the company’s debts as “not too big”, but said that “it owed a bit of money” to the ATO, its landlord, its accountant and a vendor finance company.

“Like hundreds of other of gyms, it’s very hard to climb out of the Covid hole,” Mr Giasoumi said.

More than 20 F45 gyms have shut in Australia over the past 18 months according to figures compiled by news.com.au.

As well as competition from other gym chains, franchisees cite factors such as small territories which put them in competition with other F45 franchises, high rents and the percentage of revenue taken by the parent company as the reasons behind their failure.

Wahlberg first invested in the Aussie gym franchise in 2019 after it had launched in the US but before it listed on the New York Stock Exchange in 2021.

The collapses coincide with high-profile F45 investor and Hollywood A-lister Mark Wahlberg shooting a movie in Sydney.

After listing with a share price of US$17 (A$25), it was eventually delisted by the exchange in September 2023, by which time its share price had fallen below US$1 (A$1.49).

It was kicked off the exchange because its share price traded below US$1 for more than 30 consecutive days and due to its failure to file financial accounts.

Its executive suite has also had a revolving door in recent years with two chief financial officers leaving the business in the space of less than a year and CEO Adam Gilchrist (not the cricketer) departing the business in July 2022.

Wahlberg arrived in Sydney last month to film a new movie, Play Dirty, which is being filmed on the city’s northern beaches.

He has been spotted playing golf and going to church but is yet to be seen at an F45 gym.