Derrimut 24:7 Gym founder and owner Nikolaos Solomos is under mounting pressure as at least 15 instructors remain unpaid for a month while the Australian Taxation Office seeks to wind up one of his companies over a $12.53 million debt.
A Federal Court wind-up hearing is scheduled for Friday, after an adjournment last month allowed more time for negotiations with the ATO.
In an email to Adelaide instructors owed thousands, the gym said it was “securing short term finance as part of a debt restructure” but could not confirm when wages would be paid. It promised to bring payments up to date within two to four weeks.
Solomos has publicly acknowledged the debt in an Instagram video while also addressing the abrupt closure of the Angle Vale branch, which was shut in July over $220,000 in unpaid rent. Other branches, including Munno Para and Shepparton, have also been forced to close.
Despite the financial turmoil, Derrimut 24:7 continues to promote cut-price memberships online. Court filings show the tax debt was reduced from $15 million in April, but major creditors including AGL, Return to Work SA, Melbourne United Basketball, and Fitness Equipment Pty Ltd are backing the ATO’s action.
Unpaid staff have expressed frustration at the lack of communication. One instructor said, “They’re still taking money from members but they’re not paying us – there’s been no clear communication. I’m pissed off. I’m really frustrated.”
Another added the situation was “just appalling” and “threatening the livelihood of people.”
Source: The Advertiser.
