Derrimut 24:7 Gym faces liquidation as court weighs winding up; billionaire Portelli signals rescue

Derrimut 24:7 Gym is facing liquidation after the Australian Taxation Office sought to claw back about $12.5 million in debts, including unpaid superannuation and penalties, triggering concern among members and suppliers. A Federal Court hearing to wind up the privately held fitness chain was adjourned until October 10, keeping the fate of the group’s 25-plus locations in limbo. The chain operates across South Australia and Victoria and serves roughly 200,000 members, making the financial distress a sizable event in Australia’s mid-market fitness segment.

The company’s founder and director, Nikolaos Solomos, has said the debt is “under control” and has reassured staff that payments would come. In recent weeks, Derrimut 24:7 has closed at least four locations across two states, prompting questions about the continuity of services and the security of member fees. The Australian franchise’s struggles have intensified scrutiny from members, some of whom have shared concerns online about whether they will receive refunds if the chain collapses.

The distress around the business has converged with talk of a potential rescue by controversial billionaire Adrian “Lambo Guy” Portelli. A cheeky video circulated on social media showing Portelli and Solomos arriving at a Derrimut gym in a black van, fueling speculation about a possible deal. Portelli later confirmed to the Sydney Morning Herald that he is in negotiations to acquire part of the business, though no binding agreement had been reached. He said teams were working in the background to position the brand for a comeback and stressed that a priority would be to ensure all suppliers and tax debts were paid.

Portelli’s involvement is not new to the saga; the financier has previously been linked to high-profile property dealings and has appeared publicly with Solomos in media events, including instances tied to other reality-television-bound ventures. The Daily Mail’s coverage notes the long-standing attention around Derrimut 24:7, including how the founder’s leadership and the chain’s rapid expansion have shaped investor and consumer perception.

Instructors owed wages have reportedly been paid in the wake of the liquidity concerns, a development reported by The Adelaide Advertiser, though suppliers and some employees continue to monitor the situation closely. Derrimut 24:7 was founded in 2010 in Melbourne by Solomos, with a mission to provide a premium fitness experience featuring state-of-the-art facilities and personalized training plans. Membership options include a $9.95 weekly direct debit or a $299 upfront annual plan, a pricing structure that has underpinned rapid growth but now faces scrutiny as the company negotiates its next steps.

Analysts note that the Derrimut 24:7 situation highlights the fragility of mid-sized fitness brands facing large debt loads and the potential spillover effects on local suppliers, gym operators, and tens of thousands of members who rely on consistent access to facilities. Court proceedings and potential rescue talks will likely shape the market’s view of the viability of mid-tier fitness chains in the current economic environment, where debt management and timely superannuation payments have become focal points for both regulators and investors.