Embattled fitness chain Derrimut 24:7 has avoided immediate liquidation after a Federal Court adjourned proceedings to wind up one of its companies over a $12.53 million debt to the Australian Taxation Office.
Director Nikolaos Solomos addressed instructors via Zoom last week after growing unrest among staff, many of whom had gone unpaid for more than a month.
He assured them the tax debt was “under control” and pledged that wages would be rectified within days. A follow-up group email promised all payments by October 1, which The Advertiser reports has largely been met.
Solomos acknowledged shortcomings in management, admitting: “I didn’t pay enough attention to the little things and I didn’t have the right people in place.” He also revealed the business had lost 85 per cent of its workforce in recent months.
The controversy intensified when luxury cars linked to Derrimut management were listed for sale online, including a Lamborghini Urus valued at $550,000 and a Bentley Continental at $280,000 – both bearing personalised plates and registered as commercial vehicles. The Bentley has previously featured on Solomos’ Instagram account.
Despite multiple gyms being closed by landlords over unpaid rent – including branches at Noarlunga, Angle Vale and Munno Para — Solomos insisted the brand is “here to stay”.
He said Derrimut is still operating with 230,000 members and 850 staff across 25 gyms, and plans to return to a fully staffed 24/7 model.
Court filings reveal the ATO debt was reduced from $15m in April to $12.53m in June. Other creditors backing the wind-up application include AGL, Bench Fitness, Return to Work SA, Melbourne United Basketball and Fitness Equipment Pty Ltd.
Source: The Advertiser
