Billionaire Adrian Portelli has walked away from plans to bail out the troubled Derrimut 24:7 Gym chain, citing an inability to reach an agreement with its owners.
The dramatic withdrawal came just hours after the Federal Court granted Derrimut another extension to settle its debts, including a $12.53 million tax bill owed to the Australian Taxation Office (ATO).
On Friday evening, Mr Portelli broke the news via Instagram, following the adjournment of a wind-up hearing to November 24.
“Sorry guys,” he posted. “I truly wanted to help save Derrimut gym and be part of keeping such an iconic name alive for its loyal members.
Unfortunately, we couldn’t see eye to eye and make the deal work and I’ve had to pull out.
I still have massive respect for what the Derrimut team has built and wish them nothing but success in the future.”
Mr Portelli had publicly declared his intent to rescue the gym chain in September, but the terms of any potential deal were never disclosed.
During Friday’s court proceedings, the ATO’s lawyer, S Smith, sought the extension to give Derrimut time to address its obligations to all creditors.
However, several supporting creditors pushed back, demanding transparency and a shorter timeline.
MJ Hicks, representing Fitness Equipment Finance, told the court there was “simply no evidence” of Derrimut’s solvency or refinancing strategy. “We’re really in the dark,” he said, noting three prior adjournments.
A Green, acting for Bourke Street Properties, raised concerns about the extended delay and lack of clarity on how debts would be managed.
Stefan De Palma, for Bench Fitness, described the repayment plan as “vague and unparticularised.”
Courtney Muir, representing AGL Sales and AGL South Australia, supported the objections.
Other creditors aligned with the ATO include Return to Work SA, Melbourne United Basketball, Del-Re National Food Group, Origin Energy, and Equity Trustees Limited.
This year, Derrimut 24:7 abruptly closed its Angle Vale, Munno Para, and Noarlunga locations amid unpaid rent disputes. The chain is also contesting an eviction attempt at its Melrose Park site.
According to court documents, Derrimut’s ATO debt has fallen from $15 million in April to $12.53 million as of June.
More Coverage
Stay updated with the latest news from Greece and around the world on greekcitytimes.com.
Contact our newsroom to share your updates, stories, photos, or videos. Follow GCT on Google News and Apple News.
