Three F45 gyms collapse owing $2.3m after franchise decline

Directors of three failed F45 gyms in Brisbane and on the Gold Coast have blamed a ‘global decline’ in the franchise which plunged their businesses into administration owing $2.3m.

Three former F45 gyms which traded across Brisbane and the Gold Coast have gone into administration owing about $2m to creditors, with its directors blaming a global decline in the franchise.

Fitlink Beenleigh, Fitlink Bundall and Fitlink Browns Plains, operated F45 gyms which had reportedly closed by December 2022, but only went into voluntary administration last month. 

They join multiple other gyms in the popular chain which closed in recent years amid financial turmoil across NSW, Victoria and Queensland.

A report lodged with ASIC on Friday said the Beenleigh, Bundall and Browns Plains F45 gyms owed up to about $2.1m in total estimated debts to creditors, including $171,578 owed to the Australian Taxation Office and about $10,264 claimed by accounting firm DLA Partners (Qld).

Most of the debts were to related parties, comprising loans between the gyms and their parent companies, the report from administrator Lee Crosthwaite of Worrells said.

There was about $1.2m in secured debts to the parent entities, owned by Fitlink directors Joseph Barbagallo, Steven Goodall and Mathew Walker.

F45 Beenleigh was one of three gyms which went into administration last month. Image: Facebook

“Despite the team’s best efforts, the gyms were unable to remain competitive in an increasingly challenging market,” Mr Goodall told News Corp.

The directors attributed the failure of the gyms to Covid and the “global decline of the F45 franchise”, the administrator wrote.

“Pandemic restrictions disrupted operations, forcing closures and reducing member attendance, which significantly affected revenue,” the report said.

“At the same time, challenges faced by the F45 brand worldwide weakened franchise support and diminished member engagement.

“Together, these circumstances created an unsustainable environment for the business to continue operating.”

Premier David Crisafulli had once posted a video working out at the Bundall F45 site.

Only one bank account remains open for Fitlink Beenleigh, with a balance of $6.55.

The Beenleigh and Bundall gyms had collected $70,000 after selling some of their equipment in 2023, the report said.

The directors of the F45 gyms said they failed amid a global decline in the franchise.

The administrator suspected the Beenleigh and Bundall gyms were insolvent from May and June 2022, five and six months before they would have closed – but further investigations were needed, the report said.

No findings have been made and no action has been taken against any directors.

Creditors could vote to liquidate the companies or to accept a proposed deal from the directors’ shareholding companies, where they would contribute $30,000 to a deed fund.

The fund would distribute $22,500 among the creditors – resulting in an expected payout of about 7 to 10 cents per dollar owed.

The administrator has recommended creditors accept the deal, warning there aren’t any expected returns from a liquidation scenario.

One of the directors, Mr Barbagallo, had also been a director of GP chain DoctorLink, which collapsed earlier this year, owing more than $38m.

News Corp has contacted him for comment.

Originally published as Three F45 gyms collapse owing $2.3m after franchise decline