Rich lister and former NRL player Wes Maas has been identified as the likely buyer of the debt-stricken Derrimut 24:7 Gym chain, after lodging a $34 million takeover proposal aimed at keeping the business operating.
The rescue deal, backed by Maas’ Cavalo Prestige Motor Group, would see employees and secured creditors paid in full, while unsecured creditors — including landlords and fitness equipment suppliers — would receive up to 50 cents in the dollar.
According to The Advertiser, administrator Stephen Dixon has recommended creditors accept the offer, saying it would deliver a better outcome than liquidation and preserve the majority of jobs. Creditors are due to vote on the proposal on Monday.
In documents lodged with ASIC, Dixon revealed Maas has already provided $1.6 million in funding to keep the business trading during the administration period, after 36 expressions of interest were received and one formal offer rejected.
Derrimut 24:7, founded by Nikolaos Solomos, entered administration last month after facing mounting debts, including a $12.5 million tax bill. The chain operates more than 25 gyms across Victoria and South Australia, with several sites closing abruptly in recent months amid alleged unpaid rent.
Financial records show the business made a $5.5 million profit in FY23 before slipping into losses of $5.8 million in FY24 and a further $3.9 million in FY25, driven by declining memberships, rising wages, rent, superannuation costs and an aggressive expansion strategy.
The administrator also cited management challenges, rapid growth without adequate oversight, and the chain’s ultra-low pricing model as contributing factors to the collapse, with investigations continuing into millions of dollars in loans made to the founder.
Source: The Advertiser
