Derrimut 24:7 Gym Chain Enters Voluntary Administration After Collapse of Rescue Talks and Mounting Tax Debts

The Derrimut 24:7 gym group has entered voluntary administration after months of escalating creditor pressure, abandoned refinancing efforts, and a failed rescue proposal that left the fast-growing fitness chain with no viable path to meet more than $30 million in accumulated liabilities. Stephen Dixon of Hamilton Murphy Advisory was appointed administrator of Derrimut 247 Gym (VIC) Pty Ltd, Derrimut 247 Gym (SA) Pty Ltd and A.C.N. 139 283 104 Pty Ltd on 5 November 2025.

The appointment follows an extended standoff with the Australian Taxation Office, which has been pursuing more than $15 million in unpaid tax, superannuation, and penalties across the group’s entities. For much of 2025, the ATO sought court-ordered liquidation of the business while the company attempted to negotiate repayment arrangements and secure new investment. Several hearings resulted in short adjournments, but creditors increasingly raised concerns over the absence of a detailed restructuring strategy and the continuing deterioration of the group’s financial position. The gyms also faced separate disputes with landlords, equipment finance providers, and utility companies, some of which pressed the court for tighter timelines and more transparency as pressure mounted.

Founder Nikolaos Solomos sought external capital to stabilise the group’s position and engaged in talks with high-profile investor Adrian Portelli, who publicly signaled interest in acquiring or recapitalising the chain. Those negotiations collapsed in early November, hours after the Federal Court granted another extension on the ATO’s wind-up bid. Portelli later stated he was unable to reach agreement with the owners and withdrew, leaving the company without the fresh funding it had promoted as essential to a turnaround. Just days later, Solomos informed staff that administrators had been appointed to oversee a formal review of the business.

Derrimut’s footprint across Victoria and South Australia grew rapidly over the past decade, with 26 gyms operating prior to the administration. That momentum masked increasing cash flow strain, including missed tax obligations, delayed supplier payments, and arrears on leases that prompted the closure of several locations in 2025. The administrator is expected to examine the impact of expansion-driven spending, related-party transactions, and the use of corporate accounts for non-business purposes, which were flagged in earlier reporting on the company’s finances.

For now, the administrator has kept all sites trading, stated that employees will continue to be paid, and commenced an immediate assessment of whether the underlying operations can be restructured, sold, or recapitalised. Meanwhile, Portelli has since indicated publicly that he may pursue a purchase through the administration process.