{"id":39919,"date":"2022-08-15T18:52:57","date_gmt":"2022-08-15T06:52:57","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=39919"},"modified":"2022-08-15T18:54:11","modified_gmt":"2022-08-15T06:54:11","slug":"more-bad-news-for-aussie-fitness-empire","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/more-bad-news-for-aussie-fitness-empire\/","title":{"rendered":"More bad news for Aussie fitness empire"},"content":{"rendered":"

PHOTO: David Beckham Is The New Face Of F45<\/strong><\/p>\n

A struggling Aussie fitness franchise that\u2019s been savaged on the international stock markets now faces a new challenge from overseas heavyweights.<\/p>\n

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A struggling Australian fitness franchise that has been savaged on the stock markets is now facing not one, but five potential lawsuits.<\/p>\n<\/div>\n

F45<\/a> Training Holdings Inc, known for its high intensity interval training (HIIT) classes, was at first an Australian success story after hitting the New York Stock Exchange in July last year and\u00a0raking in $500 million on the first day.<\/p>\n

\"F45\"<\/a><\/div>\n
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Next twist in F45 fitness downfall<\/a><\/h2>\n<\/header>\n<\/div>\n

But two weeks ago things drastically changed; the company\u2019s founder and\u00a0CEO Adam Gilchrist stepped down while 110 employees were laid off\u00a0and expansion plans were slashed significantly.<\/p>\n

Stock prices plunged off the back of the news and dipped to 62 per cent of its original price at its lowest, when it sank to $US1.35 ($A1.90) on July 27.<\/p>\n

At time of writing, according to MarketWatch, F45 stock was trading at $US2.15 ($A3) compared to its listing price of $US16 ($A22.50) just a year earlier.<\/p>\n

\"F45<\/a><\/div>\n
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\u2018ENORMOUS ISSUES\u2019: Co-founder reveals why F45 suddenly imploded<\/a><\/h2>\n<\/header>\n<\/div>\n

Now five heavyweight class action law firms from the US are calling for investors to come forward to explore the possibility of filing a class action.<\/p>\n

The firms are investigating whether F45 misrepresented itself to investors and the most recent legal firm only announced it was investigating the company on Friday.<\/p>\n

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\"Actor<\/div>\n

Actor Mark Wahlberg and F45 CEO Adam Gilchrist pose on the trading floor as F45 Training rings the opening bell at the New York Stock Exchange in 2021. Picture: Noam Galai\/Getty Images for F45 Training<\/strong><\/em><\/p>\n<\/div>\n

In July last year at its initial public offering, F45 sold 18.75 million shares of stock priced at $US16.00 per share.<\/p>\n

It had a stunning $US1.46 billion ($A2 billion) market capitalisation however that has since slipped to $US183.6 million ($A258.60).<\/p>\n

\"F45\"<\/a><\/div>\n
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F45\u2019s Marc Marano sets Coogee record<\/a><\/h2>\n<\/header>\n<\/div>\n

In May, F45 thought it had secured a $US250 million ($A350 million) line of credit to keep rapidly expanding but by the next investor\u2019s meeting in July, this had fallen through.<\/p>\n

But during the July trading update, investors learnt that credit line would not be available.<\/p>\n

After planning to roll out 1500 new franchises this year F45 will instead aim for between 350 and 450 and its forecasted revenue has dropped from $US275 million ($A387 million) to $US130 million ($A182 million).<\/p>\n

\"F45\"<\/a><\/div>\n
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F45\u2019s Rob Deutsch and Adam Gilchrist: a duo expanding their property empires<\/a><\/h2>\n<\/header>\n<\/div>\n

F45 fitness founder and CEO Adam Gilchrist \u2013 not to be confused with the cricket player of the same name \u2013 reportedly immediately listed his house on the market after the downfall.<\/p>\n

Coincidentally, the same weekend that another law firm announced it was investigating the possibility of a class action, Mr Gilchrist successfully sold his $A14 million Sydney home.<\/p>\n

Mr Gilchrist and Rob Deutsch founded the company in 2013 in the Sydney suburb of Paddington but Mr Deutsch left in February 2020 and\u00a0said he was devastated to hear what had happened since then.<\/p>\n

\"F45<\/a><\/div>\n
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F45 gym boss splashes $18.8m on Byron Bay trophy home<\/a><\/h2>\n<\/header>\n<\/div>\n

\u201cNever in my wildest dreams could I have imagined this,\u201d Mr Deutsch wrote on Instagram after the shock news of the lay-offs. \u201cWhen I exited, and sold out of F45, I left a healthy, phenomenal, beast of a business. All the way from the company culture to the heart beat of the business \u2026 The workouts. F45 was special.<\/p>\n

\u201cI genuinely hope all of the 110 laid-off staff, find happiness and opportunities elsewhere.\u201d<\/p>\n

News.com.au has contacted F45 for comment.<\/p>\n

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\"F45<\/div>\n

F45 has had to lay off staff and slow down expansion plans after a bloodbath on the stock market.<\/strong><\/em><\/p>\n<\/div>\n

On Friday, US law firm Labaton Sucharow called for investors to get in touch, the latest in a string of legal firms circling F45 like sharks.<\/p>\n

Prior to that, Schall Law Firm, a US shareholder rights litigation firm, announced last Tuesday that it was investigating F45 \u201cfor violations of the securities laws\u201d.<\/p>\n

Then there was Bragar Eagel & Squire, P.C., another shareholder rights specialist, which started its own investigation a day later.<\/p>\n

Bragar Eagel & Squire stated the company\u2019s revenue was \u201c down significantly\u201d compared to what was previously promised to investors.<\/p>\n

James Wilson of Faruqi & Faruqi also called for investors who have \u201csuffered losses exceeding $US50,000 ($A70,450) investing in F45 Training stock or options\u201d.<\/p>\n

Portnoy Law Firm also weighed in, saying it was investigating \u201cpossible securities fraud\u201d and that it would provide a \u201ccomplimentary case evaluation and discuss investors\u2019 options for pursuing claims to recover their losses\u201d.<\/p>\n

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\"Adam<\/div>\n

Adam Gilchrist sold his house shortly after his company\u2019s crash.<\/strong><\/em><\/p>\n<\/div>\n

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\"This<\/div>\n

This northern beaches property sold over the weekend.<\/strong><\/em><\/p>\n<\/div>\n

Embattled CEO sells home<\/b><\/span><\/p>\n

Mr Gilchrist reportedly listed his Sydney mansion, located in Freshwater in the city\u2019s northern beaches region, on the market following his company\u2019s stock crash.<\/p>\n

Over the weekend, it\u2019s understood to be have been sold.<\/p>\n

The Sydney Morning Herald<\/a><\/i>\u00a0reported that strict gag orders prevented the real estate agents from disclosing its final price.<\/p>\n

However, they did confirm it sold for more than he bought it for in 2019, which was $14 million.<\/p>\n

Realestate.com.au<\/a>\u00a0reported that it sold more than $1 million over the reserve.<\/p>\n

READ MORE VIA NEWS.COM.AU<\/a><\/p>\n

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