Flip Out Darwin drama after its national franchisor takes back control of embattled business

FLIP Out Darwin will re-open under new management on Tuesday

Flip Out Darwin has had its operating licence revoked by its national franchisor. Picture: Keri Megelus

FLIP Out Darwin will re-open under new management on Tuesday.

Flip Out Australia franchisor Steven Stone said liquidators Rodgers Reidy had been operating the Darwin indoor trampoline playground for the past four weeks after the previous owners went into voluntary administration earlier this year.

Mr Stone said on Monday: “The liquidator had a licence from us to continue to trade the business but we have cancelled the licence on Monday at 12pm ... we’ve done what we need to do and will reopen the business as soon as possible, but this time head office will be operating the business directly.

“Because the customer experience hasn’t been meeting the expectations we have of our franchisees, it’s better that we just operate it ourselves and meet those standards,” he said.

“We’ve had calls from several customers, telling us about their complaints about the poor service and unaccommodating staff and that’s not what Flip Out Australia is all about.”

A letter from Flip Out’s lawyers to Rodgers Reidy on Friday said an external administrator had been appointed to take over the business.

The letter made no reference to mismanagement or customer complaints.

Rodgers Reidy director Stuart Reid said: “Since May 8, at no time were concerns raised by the franchisor or anything else about inadequate safety procedures or mismanagement.”

“The first time any concerns were raised were on Friday, and they were of a general safety nature,” he said.

“They did terminate the franchise agreement, but not for the reasons they state, the reason given was that the company had entered voluntary administration. The franchisor was in Darwin on Friday with the stated purpose of getting control of the business that afternoon. “We agreed that the franchisor could be in the business on the weekend, specifically given his concerns about safety.”

Mr Stone said Flip Out would be back in operation on Tuesday.

“So parents don’t worry because everything will be up and in running order well before the kids go on holidays next week,” he said.

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“We’ll be here as long as it takes to get this place back in top shape, we’ll ensure to train the staff properly.

“There are about 40 people employed here at the moment and we’ll be more happy to rehire them.

“They’re nearly all casual employees though and we’re looking for full-time permanent staff to give them security.

“But if the staff want to continue with us, of course we’ll keep them on because they know the business.

“But I will be making sure they run it the Flip Out Australia way by going above and beyond to make sure kids have a happy time.

“We not only own the franchise, we own the Penrith and Brookvale centres, too.”