Derrimut 24:7 Gym founder Nikolaos Solomos has placed the largest company in his struggling fitness empire into administration, days after billionaire Adrian Portelli withdrew from a rescue deal.
In a message to staff on Thursday, November 6, Solomos said the decision was “not made lightly” but was a “proactive step to restructure, protect jobs, and position the business for a stronger future.”
He assured employees they would continue to be paid weekly and that all 26 gym locations would remain open.
The chain is estimated to owe nearly $30 million, with debts to the Australian Tax Office, landlords, suppliers and other creditors.
The ATO has been pursuing $15.4 million in unpaid taxes, superannuation and penalties but recently agreed to delay liquidation proceedings by four weeks.
Insolvency expert Stephen Dixon of HM Advisory has been appointed as administrator.
Solomos said a new investor had joined to assist through the administration process, though their identity remains undisclosed.
Source: The Age
