Derrimut’s gyms have continued to trade since its collapse, though at least two are expected to close after lenders took possession of two properties and are now selling them as “vacant on possession”.
An investigation by this masthead in September revealed the parlous state of Derrimut’s business, which was struggling to pay for day-to-day business expenses, including toilet paper. At the same time, the business was also paying for staff members’ luxury cars, and large allowances to Solomos and his family. It is estimated the companies owe more than $30 million, of which an estimated $15.4 million is owed in tax debts, unpaid superannuation and penalties.
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Rumours have been swirling of expected interest in the gym chain in recent weeks.
Billionaire businessman Adrian Portelli had initially offered to be a white knight for the business, which still has a large membership and strong brand despite its financial troubles, before pulling out and citing concerns about how the company was being managed.
After the company’s administration, he said he had made an offer for the business.
“They don’t run a business like I do, and I’m not willing to sacrifice tens of millions of dollars for someone else to potentially ruin my reputation in business,” he said. “However, now that it’s gone into administration, I wouldn’t be opposed to buying the whole f—ing lot.”
Portelli said he expected competition from larger gym groups looking to take over Derrimut 24:7 Gym’s membership, but not the brand.
A second creditors’ meeting is scheduled for next week.
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