Derrimut Gym Faces Debt, Closures, and Angry Members

Derrimut Gym Faces Debt Closures and Angry Members

Derrimut Gym Faces Debt, Closures, and Angry Members

The story around Derrimut 24:7 Gym has taken a dramatic turn, and members are not staying quiet about it. What was once marketed as a low-cost, all-hours fitness empire is now being described by many as a sinking ship. Complaints are piling up about broken equipment, filthy bathrooms, cancelled classes, and, most of all, money that members and instructors say they are still owed.

An investigation revealed that Derrimut, born in Melbourne and rapidly expanded across Australia, is drowning in financial problems. The Australian Tax Office is chasing more than $15 million in unpaid taxes, superannuation, and penalties. At the same time, the company’s owner, Nick Solomos, has been accused of using business accounts to fund a lavish lifestyle—millions of dollars withdrawn for personal spending, payments to his ex-wife, and luxury perks for staff. While he insists that new financing is close, the pressure from creditors and courts continues to mount.

Also Read:

For the gym’s estimated 200,000 members, the experience has gone from frustrating to infuriating. Some say half the lockers are broken, paper towel dispensers sit empty, and hygiene has fallen to dangerous levels. Members like Renzo, who paid $150 for his annual pass at one of the busiest gyms, say the facilities are crumbling and no one at head office responds in time. Others, like Georgia, lost their favorite classes when group fitness was cut back, leaving them with nothing they originally signed up for. Refund requests are ignored for months, and many feel they’ve thrown away their money.

In South Australia, entire gyms have shut down without warning because rent wasn’t paid, leaving members stranded mid-membership. Zak, who lost access to his gym in July, only received a partial refund after threatening to escalate the issue to the consumer watchdog. Stories like his are becoming more common as doors close across Victoria and Adelaide.

Even fitness instructors are caught up in the mess. Some haven’t been paid for weeks and are cancelling classes because they fear their invoices will never be settled. An internal email promised payments would restart once short-term financing was secured, but staff say they’ve heard it all before.

Meanwhile, legal battles are stacking up. Derrimut is fighting off landlords, construction companies, and the tax office all at once. A temporary reprieve was granted in court, but deadlines are looming in October. Behind the scenes, creditors have joined forces with claims worth millions, pushing the business closer to liquidation.

For now, members walk into gyms with broken machines, no soap, and unanswered questions, while instructors wonder if they’ll ever see their pay. What was marketed as an affordable, community-driven gym is now being remembered by many as an empire that overpromised and underdelivered—spiraling under the weight of its own debts.

Read More:

Post a Comment

0 Comments