Gym entrepreneur Nikolaos Solomos is set to exit the business he founded after creditors overwhelmingly backed a rescue deal for the struggling Derrimut 24:7, effectively ending his involvement with the popular gym chain.
According to The Advertiser, the $34 million proposal, backed by more than 300 creditors, will see employees and secured creditors paid in full, with unsecured creditors receiving up to 50 cents in the dollar.
The deal was put forward by businessman Wes Maas, who will retain control of a reduced number of properties and oversee a partial rebrand, including a new name.
While Derrimut 24:7 will continue operating, several Solomos-linked businesses, including Derrimut Nutrition and supplement brands Protein 247 and Ultimate Performance, have been placed into liquidation.
Administrators said the restructure would deliver a better outcome than liquidation and preserve most jobs, following months of financial distress linked to tax debts, aggressive expansion and rising interest rates.
Solomos handed control of his businesses to administrators in November after a proposed deal with Adrian Portelli collapsed, bringing his direct involvement in the Derrimut empire to an end.
Source: The Advertiser
