Two more F45 training halls closed – leaked email revealed
Two more F45 Training gyms have closed as the once popular Australian fitness chain faces a deepening crisis.
F45, known for its high-intensity interval training and endorsed by stars like Mark Wahlberg, was at one point the darling of the fitness world and listed on the New York Stock Exchange for $1.46 billion in 2021.
But due to the plummeting stock price and loss of investor confidence, the company was delisted and several franchises went bankrupt.
Two more chains have since closed their doors.
Last Friday, the F45 franchises in Labrador and Surfers Paradise announced to their members that they would be closing, according to news.com.au.
The locations, located on the Gold Coast, had both been open for ten years.
The Labrador franchise’s Instagram account posted a message saying the franchise was “permanently closed.”
“Cherishing 10 years of memories and life changing moments we created together. Thank you for being a part of our journey,” the message added.
Last Friday, the F45 franchises in Labrador and Surfers Paradise announced to their members that they would be closing. These are the latest two franchises to close their doors as the fitness chain faces a deepening crisis.
A post on the Labrador franchise’s Instagram account said it was “permanently closed”
At least four franchises have closed on the Gold Coast in the past year, while more than two dozen have closed across Australia in the past 18 months.
This is evident from an email from an F45 insider, in which a broker complains that interest in purchasing the gyms has decreased enormously compared to two years ago.
‘I have specialised in the health and fitness sector for 7 years and have worked with a number of brands over the years including F45,’ the email, seen by news.com.au, reads.
‘The brand image has suffered serious damage over the past 12-18 months and it has become almost impossible to sell them even for $1 given the enormous risks buyers are taking.
‘Unfortunately, I have to turn away dozens of franchisees due to the enormous lack of interest from buyers.
‘It has even had a noticeable impact on other functional training brands, with buyers very reluctant to invest in the sector. In addition, many lenders are unwilling to engage them, particularly F45.’
The parent company was taken private after its stock price remained below $1 for more than 30 days, and two CFOs left in less than a year.
