The Derrimut 24:7 Gym in Melrose Park, Adelaide’s south, faces eviction after a court ruling cleared its landlord to take back the premises, marking the latest blow for the struggling fitness chain.
On Thursday, Adelaide’s District Court dismissed Derrimut’s attempt to stop landlord Dimitri Aretzis from closing the Melrose Park site over unpaid rent. Judge Michael Burnett said the company’s subsequent move into administration “fortified” his ruling.
Insolvency expert Stephen Dixon of HM Advisory was appointed administrator of Derrimut 24:7 Gym’s flagship store on Wednesday, with founder Nikolaos Solomos handing over control. The gym will continue operating while investigations into the company’s finances begin.
The court decision comes less than a week after billionaire Adrian Portelli abandoned plans to rescue the business, which owes the ATO $12.5 million.
“Unfortunately, we couldn’t see eye-to-eye and make the deal work,” Portelli said on Instagram.
The Melrose Park eviction follows the closure of Derrimut gyms in Angle Vale, Munno Para, Noarlunga, and Shepparton, all linked to unpaid rent.
Court documents show the company’s debt fell from $15 million in April to $12.53 million in June, with other creditors including Return to Work SA, Origin Energy, and Melbourne United Basketball.
Despite mounting pressure, Solomos told staff earlier this year he believed the chain could survive: “For me, it was about opening gyms… and I didn’t pay enough attention to the little things.”
Source: The Advertiser
