‘I can save that gym’: Billionaire Adrian Portelli renews bid for Derrimut empire

Less than a week after withdrawing his rescue offer for the struggling Derrimut 24:7 Gym chain, Melbourne billionaire Adrian Portelli has signalled fresh interest in acquiring the entire business.

In a Friday Instagram post to his 500,000 followers, Portelli reacted to the chain’s entry into administration, vowing to “put a stop to the sharks” eyeing the company.

He confirmed to The Age that he had submitted a formal expression of interest to HM Advisory, the firm now overseeing the business, but declined to disclose offer details or the proposed price.

“It’s true, I didn’t see eye to eye with the previous owners,” he wrote online. “They don’t run a business like I do, and I’m not willing to sacrifice tens of millions of dollars for someone else to potentially ruin my reputation in business. However, now that it’s gone into administration, I wouldn’t be opposed to buying the whole f---ing lot.”

Staff were informed via memo that operations would continue as normal despite debts estimated at nearly $30 million. HM Advisory partner Stephen Dixon was appointed administrator, per filings with the corporate regulator on Thursday.

In September, Portelli had told The Age he was negotiating a stake to clear debts and preserve jobs for 800 staff and hundreds of thousands of members.

On Friday, he described the chain as “treading water” financially. Despite advancing funds in recent weeks to support a deal with founder Greek Australian Nick Solomos, negotiations repeatedly stalled.

“I don’t have anything against Nick,” Portelli said. “I was there, ready to do a deal… but we just kept facing hurdles, and we were just getting mucked around.”

Learning of other parties circling the business, he pledged to block opportunists seeking to “capitalise on the market share”.

“If it’s got anything to do with me, I’m gonna f---ing stop that,” he said. “I can get in there and I know I can clean it up and save that gym. That gym originated from the west where I was born, I went to that gym when I was a young chap. I do want to save that gym.”

Administration, he added, simplifies the process and suits his “bargain hunter” approach. “I didn’t want to go down that path because it’s not a money play for me. I respect the work they’ve done, and I wanted to keep them involved. But my back was pushed against the wall, and here we are.”

“I’m stepping in for the people, to be honest. I don’t want to see the gym close. There are a few players [expressing interest], but like I said, I’m down for a discount.”

Founded in 2010 in Melbourne’s north-western suburb of Derrimut, the chain would see no membership changes under Portelli’s ownership, though he aims to shed its “bad boy image”.

“If I do get my hands on it, I can assure you that it will be there to stay,” he said.