Adrian Portelli Walks Away from Troubled Derrimut 24:7 Gym Deal
Billionaire businessman Adrian Portelli has officially backed out of plans to purchase a stake in the struggling Derrimut 24:7 Gym chain. The decision, which he announced on Instagram, came after weeks of negotiations with founder Nick Solomos — negotiations that, according to Portelli, simply couldn’t find common ground. He said he had hoped to help rescue the iconic gym brand and save hundreds of jobs but ultimately “couldn’t see eye to eye” with the owners to make the deal work.
This marks a major blow to Derrimut, which is currently battling massive financial trouble and facing liquidation proceedings initiated by the Australian Tax Office (ATO). The fitness empire, once known for its low-cost memberships and massive warehouse-style gyms, is now entangled in debt claims totaling over $15 million. The ATO alone is chasing $12.5 million in unpaid taxes, superannuation, and penalties.
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Things have only worsened as additional creditors — including big names like AGL, Life Fitness, and Melbourne United Basketball — have joined the legal battle, bringing total claims to over $2 million. The company’s financial records, previously exposed in The Age , revealed a troubling pattern: unpaid superannuation, mounting tax debts, and funds being redirected for personal expenses such as mortgage payments, luxury cars, and even $5,000 weekly cash allowances.
While founder Nick Solomos had been publicly optimistic, even appearing in a social media video with Portelli announcing talks of a rescue plan, the billionaire’s withdrawal now leaves the gym chain’s future uncertain. Portelli, widely known as the “Lambo Guy” and a regular figure on The Block , said he still respected what the Derrimut brand had achieved but simply couldn’t proceed under the current conditions.
Meanwhile, Derrimut’s crisis has spilled over into its operations. Members have complained about deteriorating gym conditions — hygiene issues, lack of maintenance, and missing essentials like hand towels and toilet paper. WorkSafe has reportedly flagged concerns, and some landlords have even moved to reclaim properties over unpaid rent. Despite that, the company has continued to promote discounted memberships online, possibly as a last-ditch effort to maintain cash flow.
Three of Derrimut’s major sites — in Thomastown, Ravenhall, and Derrimut itself — are now being sold off by receivers Rodger Reidy, who were appointed in September. The properties, expected to fetch around $30 million combined, are already on the market, with expressions of interest closing in early December. But even that may not be enough to cover the mounting debts, as all three properties are reportedly tied up in loans with multiple lenders.
The Federal Court has adjourned the liquidation case until November 28, giving Solomos a few more weeks to find financing and prove that Derrimut can remain solvent. But with Portelli gone and creditors growing impatient, the future of the once-booming gym chain looks increasingly uncertain.
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