The administrator of Derrimut 24:7 Gym has disclosed that a $14 million director-related loan connected to founder Nikolaos Solomos is among several accounts now being reviewed as part of the fitness chain’s insolvency process.
Solomos handed control of his companies to administrators in October, shortly after a potential rescue deal with billionaire Adrian Portelli fell through.
Administrator Stephen Dixon told creditors the Derrimut Group had accumulated around $29 million in intercompany and beneficiary loan accounts, including the $14 million associated with Solomos.
Rising expenses, an “aggressive expansion strategy,” management structures that failed to keep pace with rapid growth, and post-pandemic disruptions contributed to a $2 million loss in FY25 and ultimately the group’s collapse.
The business continues to trade after a third party agreed to fund ongoing losses, while a potential investor considers a formal rescue proposal.
Listed creditors include the tax office with a $14.9 million claim, equipment financiers, property businesses and landlords, with one property group alleging it is owed $59.1 million.
Derrimut, founded in 2010 and operating more than 25 gyms across Victoria and South Australia, has seen several abrupt branch closures in recent months due to alleged unpaid rent.
Source: The Advertiser
