Latest news with #F45
The Age
10 hours ago
- Business
- The Age
What collapse? How F45 Australia is plotting a comeback
Halfway into 2022, the world's fastest growing fitness empire began making headlines for all the wrong reasons. Barely 12 months had passed since a beaming Mark Wahlberg was photographed with F45 Training co-founder and chief executive Adam Gilchrist at the New York Stock Exchange, where the company soared to a $US1.6 billion ($2.5 billion) valuation and $US16 share price. Suddenly, Gilchrist was stepping down, and 110 employees were being laid off. Profit and revenue forecasts had been slashed. The share price plunged. A few months later, David Beckham – an ambassador for the brand – launched a lawsuit against it. In July 2023, F45 admitted to 'material errors' in financial figures that wound up being losses of $US372 million. F45 delisted from the NYSE the following month. In Australia, F45 studios were hitting the market or closing. Since then, life has moved on, but the narrative of imminent collapse has stuck. 'A lot of people are surprised when they find out I have an open F45,' said Danielle Tuifua, who owns a studio in Sydney's coastal suburb of Dee Why. 'It all did get into a lot of people's heads that F45 was going under and closing everywhere and all that,' she said. 'They're still everywhere.' Turning over a new leaf and distancing itself from its tumultuous history of hanging onto survival is a key focus, and challenge, for the fitness chain's new management. At the helm of F45 in Australia and Asia Pacific is Adrian Furminger, who took on the general manager role a year ago after undertaking some of his own due diligence. He found that F45 was still a household name and still the leading brand in the functional group fitness sector. 'You hear the stories, like 'we're collapsing'. It's just not true,' he said. 'We still have over 200 studios across Australia. Globally, [we have] over 1500 studios. I mean, that's a massive success story. We just need to shift the narrative a little bit.' Inside the rise and fall of F45 From 2015 to 2021, few fitness chains could rival F45's hype, fuelled by Hollywood celebrities brought on to spruik the 45-minute sessions that combined high-intensity interval training, circuit training, and functional strength movements. Setting a target of 23,000 studios around the world, the empire was going to be ' bigger than McDonald's '. 'Investors could buy a gym and it would probably make money, and they probably didn't have to do much. The model was that good,' said Peter Day, a director of F45 Seaforth on Sydney's northern beaches and long-time franchisee. For local operators, the wheels started falling off once Gilchrist and co-founder Rob Deutsch – who each pocketed $US50 million in cash when Wahlberg and his investment vehicle MWIG bought a stake in 2019 – started turning their attention to overseas expansion. As part of its IPO ambitions, F45 moved its headquarters to Austin, Texas. A lot of staff went with it. Loading Communication and oversight dropped off some time after, multiple current and former franchisees said. 'More resources were getting thrown at the new studios being open in the US,' said Day. 'When you grow too quickly, you're making mistakes along the way because you probably haven't got tight processes in place,' said Stuart Maltese, who owns two studios in Melbourne's St Kilda. During that period, Tuifua noticed fewer check-ins on compliance. 'If you needed help, you would have to kick up a bit of a stink to get it.' Another fitness industry source, who requested anonymity to speak freely, described the explosion of studios as a 'house of cards'. Community-centred events, such as the F45 Playoffs – popular 10-minute fitness competitions held on Manly and Bondi beaches and accompanied by thumping electronic music and cheerleaders – dropped off. Some of the very celebrities who contributed to F45's success turned on it: Beckham and golfer Greg Norman sued, and ultimately settled with, F45 for breaching contract terms to pay out shares for the endorsement. In the pursuit of growth, F45 had oversold territories. Dozens of investor-owners who bought into the hype had purchased one or several studios thinking it would be an easy business investment, but hadn't built a strong enough community or the know-how to withstand lockdowns. The pandemic decimated dozens of gyms, F45 or otherwise, particularly those in the CBD. In the headlines, shuttered F45 studios were being linked to the turmoil unfolding in the US. 'A lot of them started to close down because they didn't have that heartbeat in the area. They didn't have that focus you need to run a business,' said Day. The negative media attention was a distraction from what was otherwise business as usual, he added. 'Mark Wahlberg, David Beckham, it doesn't matter. What [members] care about is, is it going to be good for them tomorrow? Are there going to be good trainers? Are they going to get welcomed by the name when they come in?' Members would ask trainers and studio owners what was going on in the US. 'I'd just say, it doesn't affect your burpees,' said Tuifua. F45, still headquartered in Texas, has been led by early investor Tom Dowd since March 2023. He has been openly critical of the team led by Gilchrist and Deutsch, whom he said were 'behaving like cowboys'. The pair drove F45's meteoric rise – and subsequent crash – based on projections F45 could sustain the breakneck rate of signing on 1000 new studios a year. 'People have questions, which is perfectly natural,' said Furminger. 'The best way to keep confidence is not to shy away from those questions. It's actually to lean into them and have the conversation and be as open and as transparent as we can, and genuinely, put our hands up and say, 'You're right. This has happened.' ' Has the company really stabilised? 'Marketing's doubled,' said Tuifua. 'I've got 50 or 60 more members than I had this time last year at Dee Why.' Seaforth's membership numbers, over 250, are at an all-time high. 'They've just [made] really smart, logical decisions,' Day said of F45's current leadership. The studio director and three-time Playoffs champion said he had turned down approaches from two rivals to switch brands for free and believes the fitness brand is more proactive than people realised, pointing to the volume of recipes, customised meal plans and innovation in the company's workouts. 'Yes, F45 took a hit, but they are still by a long shot the market leaders in this space,' he said. 'I think in 10 years' time, the brand which everyone will still know is F45.' 'The right to grow' At its peak, F45 had more than 600 studios in Australia. More than half of those have closed. 'That's a consolidation. We're actually OK with that,' said Furminger. 'We have to earn the right to grow, and in earning the right to grow, part of that process is to ensure that we have a strong performing network. That's where our primary focus is at the moment, to ensure that every one of our franchisees is performing well and making money,' he said. Furminger envisions reopening in locations that used to have an F45 studio. 'Will there be an opportunity for us to expand our network size in the future? Absolutely, 100 per cent.' As the pandemic reshaped workout habits, F45's highly publicised fall from grace left room for competitors such as Body Fit Training (BFT) to capture market share in the group fitness space. F45's response to the Pilates boom has been to launch FS8, a 45-minute group workout concept like its predecessor that is lower impact by blending Pilates, yoga and toning exercises. FS8's growth so far has been slow and stuttered, despite a high-profile launch with Australian surfer Mick Fanning, whose plan to open a studio in Byron Bay never materialised. The Manly studio, where Fanning announced the launch of FS8, has closed. As F45 battled a wall of bad publicity, the company initially tried to convince existing studio owners to embrace FS8, which Maltese said appealed to a very different market. 'It has its own identity that is still trying to find its way,' he said. Shaking off the past won't be easy. F45 is facing at least two class action lawsuits in the US, brought by law firms Barrack, Rodos & Bacine and Rosen Law Firm, for being misleading in its IPO documents that it said contained 'material misstatements and omissions'. F45 had floated on projections of signing on more franchisees who would own several studios rather than 'single-unit' owners, but didn't tell the market it was offering better payment terms to multi-unit franchisees, the class action complaints state. F45 declined to comment on legal matters. It will be hard for new management to avoid the shadow of Gilchrist, who was technically listed as bankrupt between 2011 and 2014, the period when F45 was founded, and departed the business with a $10 million golden handshake. Profit margins are being squeezed by fierce competition and cost-of-living pressures. Operating costs such as rent, staff, cleaning, maintenance and other bills have risen by 30 to 40 per cent over eight years, said Day. Franchisees pointed to some of F45's recent partnerships, which include Red Bull, fitness competition Hyrox, Strava and Kourtney Kardashian's wellness brand Poosh, as signs the brand was recovering. 'I think with all the marketing and all the new things we're doing, [F45] is definitely making a comeback,' Tuifua said.
Sydney Morning Herald
10 hours ago
- Business
- Sydney Morning Herald
What collapse? How F45 Australia is plotting a comeback
Halfway into 2022, the world's fastest growing fitness empire began making headlines for all the wrong reasons. Barely 12 months had passed since a beaming Mark Wahlberg was photographed with F45 Training co-founder and chief executive Adam Gilchrist at the New York Stock Exchange, where the company soared to a $US1.6 billion ($2.5 billion) valuation and $US16 share price. Suddenly, Gilchrist was stepping down, and 110 employees were being laid off. Profit and revenue forecasts had been slashed. The share price plunged. A few months later, David Beckham – an ambassador for the brand – launched a lawsuit against it. In July 2023, F45 admitted to 'material errors' in financial figures that wound up being losses of $US372 million. F45 delisted from the NYSE the following month. In Australia, F45 studios were hitting the market or closing. Since then, life has moved on, but the narrative of imminent collapse has stuck. 'A lot of people are surprised when they find out I have an open F45,' said Danielle Tuifua, who owns a studio in Sydney's coastal suburb of Dee Why. 'It all did get into a lot of people's heads that F45 was going under and closing everywhere and all that,' she said. 'They're still everywhere.' Turning over a new leaf and distancing itself from its tumultuous history of hanging onto survival is a key focus, and challenge, for the fitness chain's new management. At the helm of F45 in Australia and Asia Pacific is Adrian Furminger, who took on the general manager role a year ago after undertaking some of his own due diligence. He found that F45 was still a household name and still the leading brand in the functional group fitness sector. 'You hear the stories, like 'we're collapsing'. It's just not true,' he said. 'We still have over 200 studios across Australia. Globally, [we have] over 1500 studios. I mean, that's a massive success story. We just need to shift the narrative a little bit.' Inside the rise and fall of F45 From 2015 to 2021, few fitness chains could rival F45's hype, fuelled by Hollywood celebrities brought on to spruik the 45-minute sessions that combined high-intensity interval training, circuit training, and functional strength movements. Setting a target of 23,000 studios around the world, the empire was going to be ' bigger than McDonald's '. 'Investors could buy a gym and it would probably make money, and they probably didn't have to do much. The model was that good,' said Peter Day, a director of F45 Seaforth on Sydney's northern beaches and long-time franchisee. For local operators, the wheels started falling off once Gilchrist and co-founder Rob Deutsch – who each pocketed $US50 million in cash when Wahlberg and his investment vehicle MWIG bought a stake in 2019 – started turning their attention to overseas expansion. As part of its IPO ambitions, F45 moved its headquarters to Austin, Texas. A lot of staff went with it. Loading Communication and oversight dropped off some time after, multiple current and former franchisees said. 'More resources were getting thrown at the new studios being open in the US,' said Day. 'When you grow too quickly, you're making mistakes along the way because you probably haven't got tight processes in place,' said Stuart Maltese, who owns two studios in Melbourne's St Kilda. During that period, Tuifua noticed fewer check-ins on compliance. 'If you needed help, you would have to kick up a bit of a stink to get it.' Another fitness industry source, who requested anonymity to speak freely, described the explosion of studios as a 'house of cards'. Community-centred events, such as the F45 Playoffs – popular 10-minute fitness competitions held on Manly and Bondi beaches and accompanied by thumping electronic music and cheerleaders – dropped off. Some of the very celebrities who contributed to F45's success turned on it: Beckham and golfer Greg Norman sued, and ultimately settled with, F45 for breaching contract terms to pay out shares for the endorsement. In the pursuit of growth, F45 had oversold territories. Dozens of investor-owners who bought into the hype had purchased one or several studios thinking it would be an easy business investment, but hadn't built a strong enough community or the know-how to withstand lockdowns. The pandemic decimated dozens of gyms, F45 or otherwise, particularly those in the CBD. In the headlines, shuttered F45 studios were being linked to the turmoil unfolding in the US. 'A lot of them started to close down because they didn't have that heartbeat in the area. They didn't have that focus you need to run a business,' said Day. The negative media attention was a distraction from what was otherwise business as usual, he added. 'Mark Wahlberg, David Beckham, it doesn't matter. What [members] care about is, is it going to be good for them tomorrow? Are there going to be good trainers? Are they going to get welcomed by the name when they come in?' Members would ask trainers and studio owners what was going on in the US. 'I'd just say, it doesn't affect your burpees,' said Tuifua. F45, still headquartered in Texas, has been led by early investor Tom Dowd since March 2023. He has been openly critical of the team led by Gilchrist and Deutsch, whom he said were 'behaving like cowboys'. The pair drove F45's meteoric rise – and subsequent crash – based on projections F45 could sustain the breakneck rate of signing on 1000 new studios a year. 'People have questions, which is perfectly natural,' said Furminger. 'The best way to keep confidence is not to shy away from those questions. It's actually to lean into them and have the conversation and be as open and as transparent as we can, and genuinely, put our hands up and say, 'You're right. This has happened.' ' Has the company really stabilised? 'Marketing's doubled,' said Tuifua. 'I've got 50 or 60 more members than I had this time last year at Dee Why.' Seaforth's membership numbers, over 250, are at an all-time high. 'They've just [made] really smart, logical decisions,' Day said of F45's current leadership. The studio director and three-time Playoffs champion said he had turned down approaches from two rivals to switch brands for free and believes the fitness brand is more proactive than people realised, pointing to the volume of recipes, customised meal plans and innovation in the company's workouts. 'Yes, F45 took a hit, but they are still by a long shot the market leaders in this space,' he said. 'I think in 10 years' time, the brand which everyone will still know is F45.' 'The right to grow' At its peak, F45 had more than 600 studios in Australia. More than half of those have closed. 'That's a consolidation. We're actually OK with that,' said Furminger. 'We have to earn the right to grow, and in earning the right to grow, part of that process is to ensure that we have a strong performing network. That's where our primary focus is at the moment, to ensure that every one of our franchisees is performing well and making money,' he said. Furminger envisions reopening in locations that used to have an F45 studio. 'Will there be an opportunity for us to expand our network size in the future? Absolutely, 100 per cent.' As the pandemic reshaped workout habits, F45's highly publicised fall from grace left room for competitors such as Body Fit Training (BFT) to capture market share in the group fitness space. F45's response to the Pilates boom has been to launch FS8, a 45-minute group workout concept like its predecessor that is lower impact by blending Pilates, yoga and toning exercises. FS8's growth so far has been slow and stuttered, despite a high-profile launch with Australian surfer Mick Fanning, whose plan to open a studio in Byron Bay never materialised. The Manly studio, where Fanning announced the launch of FS8, has closed. As F45 battled a wall of bad publicity, the company initially tried to convince existing studio owners to embrace FS8, which Maltese said appealed to a very different market. 'It has its own identity that is still trying to find its way,' he said. Shaking off the past won't be easy. F45 is facing at least two class action lawsuits in the US, brought by law firms Barrack, Rodos & Bacine and Rosen Law Firm, for being misleading in its IPO documents that it said contained 'material misstatements and omissions'. F45 had floated on projections of signing on more franchisees who would own several studios rather than 'single-unit' owners, but didn't tell the market it was offering better payment terms to multi-unit franchisees, the class action complaints state. F45 declined to comment on legal matters. It will be hard for new management to avoid the shadow of Gilchrist, who was technically listed as bankrupt between 2011 and 2014, the period when F45 was founded, and departed the business with a $10 million golden handshake. Profit margins are being squeezed by fierce competition and cost-of-living pressures. Operating costs such as rent, staff, cleaning, maintenance and other bills have risen by 30 to 40 per cent over eight years, said Day. Franchisees pointed to some of F45's recent partnerships, which include Red Bull, fitness competition Hyrox, Strava and Kourtney Kardashian's wellness brand Poosh, as signs the brand was recovering. 'I think with all the marketing and all the new things we're doing, [F45] is definitely making a comeback,' Tuifua said.
NZ Herald
19-05-2025
- Sport
- NZ Herald
On The Up: Whanganui dragon boat racer Anne Kauika heading to Germany for world championships
'I'm feeling really excited about going and competing, I have quite high expectations,' Kauika said. 'In Thailand we had a good campaign and came home with three silver medals. I'm not saying we are going to hit the podium; there are a lot more teams and a lot of unknowns, but I think that is the exciting thing. 'You know that you are going to leave 110% out there and you trust those around you because that's what they are there for - we'll see how it plays out.' Kauika moved from her birthplace of Wairarapa to Whanganui 33 years ago. She has been doing waka ama since 2008 and decided to add dragon boat racing to her arsenal four years ago. 'I just went for my first paddle and that was me,' Kauika said. Joining the world of dragon boat racing felt natural for her. 'The dragon boating is just fresh, challenging, there's different people and different places to go to, but mainly I love racing,' Kauika said. 'I think dragon boating is exciting because of the number of people that are in the boat and everyone has to paddle in time - it is so synchronised. 'I feel like I have a connection with water through being on a boat, not in it.' Training can be challenging as there is no recognised Whanganui-based dragon boat club, meaning Kauika often travels to Waikato or trains on her own. 'Motivating yourself to get out there is sometimes hard, you have to re-jig things to make the most of the time you do have,' she said. Kauika said her job at the Whanganui District Health Board was flexible which allowed her to dedicate time before, during or after work to train. She said participating in F45 training had helped her on her journey. 'F45 has got me to the fitness that I haven't ever got to before. I know that if I can't get on the water to train, I can work just as hard, if not harder, at F45,' she said. F45 Training Whanganui has helped Kauika fundraise for the world championships and she is nearly at the $10,000 mark. Kauika's family is holding raffles and other forms of fundraising to make the trip possible. The first Black Dragons training camp will be held May 24-25 in preparation for the world championships.
Yahoo
15-05-2025
- Business
- Yahoo
'Why this? It's killing business'
Standing beside his Chapel Street restaurant, Mourad Mohsiine gazed at a traffic jam on Tuesday (May 13). The queue was moving at a snail's pace. It was like this on Monday afternoon, and every midweek hometime rush hour last week. And the 42-year-old believes his Moroccan eatery Fez Tajine is 'suffering' because of it. 'This is the first week and we've already seen signs of it affecting the business,' he explained. 'We rely on passing trade and people coming from different places. Chapel Walks and Chapel Street is the heart of this area.' READ MORE: 'My teenage daughter was jumped at the park and covered in blood - they stole her phone and filmed it' READ MORE: Manchester dad arrested at Saudi Arabia airport after family holiday is jailed for 10 years as wife issues statement At the moment, the heart of the area is covered in roadworks causing 'hour long' jams for buses, deliveries, emergency services, and motorists. The cones and the closure arrived last week (May 6) to allow workers to build more space for buses, extra room for pedestrians, and new bike lanes. It will be in place until next April. Salford council has apologised for the disruption, and insisted shutting Chapel Street eastbound, away from town, 'remains the safest, most efficient option to complete the works, balancing the needs of residents, businesses, pedestrians, cyclists, and public transport in a constrained city centre environment'. But Mourad, and other businesses on Chapel Street, say the scheme is driving people away, affecting deliveries, and compromising the quality of their products. The restaurateur continued: 'What we're trying to do is bring a bit of life to this side of Salford. It used to be that no-one wanted anything to do with this area but with these businesses there's a bit of life on this street. 'We are already suffering from a lot of things as a business - people can't afford to go out as much as they used to be able to. It's really tough at the moment for a new business. We need a reward or some kind of support for this.' Next door, Matt McGuire runs the F45 gym. His review of the situation is short: 'It's s***, it's shocking.' He goes on: 'It's really doing me no favours. My classes tend to be at peak times - before and after work - and people can't turn up. At this class I've got now, I've got about four people missing and I'm losing money.' Like Matt and Mourad, Ramadan Nashnush is seeing clients drop off as they avoid the area. While people can go to Fez Tajine and F45 without using a car, Ramadan's customers can't, as he runs Nash's garage which does MOTs, servicing, and bodywork repairs. The 53-year-old explained how it affected him: 'People are thinking they cannot come in. Why are they closing it? 'It's one year. It's killing business. We need to pay tax and rent. Why this? It's not good.' Ramadan was speaking at 11am on Tuesday, when the traffic had dissipated. But 'three appointments cancelled' that morning, so he 'lost money'. However, not every firm is suffering. The manager of Black Lion pub, Josh, said he hasn't noticed an impact. 'I do not think this has affected us,' he said. 'The people who come in just want a drink, whenever sport is on people just want two.' That being said, there are firms here which go to customers directly, rather than welcoming them in. For them it's been a difficult week. Omer Kula, 40, is the manager of Ohannes burger bar on Chapel Street. He outlined how it 'affected us': 'It's affecting the delivery drivers, they cannot reach the shop in time, so it's affecting the order quality. We've been here two years, it's not been easy. This is not good.' Sophie Smith, 23, works at estate agents The Property Place, where staff have to do multiple viewings — sometimes as far away as Preston or Leeds. 'I live in Eccles and it's normally 15 minutes to get home, now it's an hour,' she added. 'We look forward to the school holidays, but we will not be this year because it's no different.' And as Sophie pointed out, it's not just drivers and businesses who have been hurt. 'The buses would still be stuck', she said after one photo showing 40 gridlocked last Thursday as Manchester United played at Old Trafford, also closing other arterial roads nearby. In response to the complaints, Councillor Mike McCusker, lead member for planning, transport and sustainable development, said: 'Salford City Council have planned the works on Chapel Street carefully, and as part of that process all partners have considered and explored a number of options to maintain traffic flows in the city centre. 'This was in partnership with Manchester City Council and Transport for Greater Manchester. 'The current one-way closure remains the safest, most efficient option to complete the works, balancing the needs of residents, businesses, pedestrians, cyclists, and public transport in a constrained city centre environment. 'The one-way closure extends over approximately 400 meters of the city centre road network. While roadworks can impact disruption to traffic flow, the periods of increased congestion and delays are primarily due to the overall capacity of the network being affected by a combination of incidents, popular events, and high vehicle volumes, rather than solely by the temporary roadworks.'
News.com.au
10-05-2025
- Health
- News.com.au
‘Never again': 31yo backflips on gym claim
Welcome to You Got This, weekly fitness series featuring stories and ideas from real women who've experienced it all. A mother has revealed how she surprised herself by entering the fitness industry after swearing she would never be part of it again. Danielle Mitchell, 31, suffered from bulimia and binge eating disorder for many years, and said the former was often a result of the latter. 'The bulimia stemmed from the binge eating disorder, so I would over-consume foods and it was copious amounts of food. It was uncontrollable, like I was having out-of-body experiences,' Ms Mitchell told She said binge eating would inspire a large amount of guilt and she felt the need to 'fix' her prior behaviour through other dangerous acts. She said it all stemmed from body image issues and quickly became a repetitive cycle. At the time, she was in the fitness industry working for a gym, managing F45 studios, running group fitness classes and doing online coaching. She was helping other women on their own journeys but said she felt unable to admit what was happening in her own life. 'I decided I needed to step away from the fitness industry to fix what was actually going on,' she said. She said at the time, she was struggling with a lot of other issues such as substance abuse. The Brisbane mum also revealed she is currently in the process of being diagnosed with ADHD. After stepping away from the fitness world, she went to a GP and got a referral for a psychologist. She said she'd always had body issues and it wasn't until she decided to become a mother, welcoming daughter Bette into the world 18 months ago, that she really addressed the root cause of everything. 'I think I dug deep and looked inside and said, where did this kind of stem from my body image issues? And seeing the women around me look in the mirror for that little bit too longer, or make comments that they need to go on a diet, or seeing them weigh themselves — things like that really do play such a big part in a little mind,' she said. Ms Mitchell said while the women around her when she was a child didn't know any better, she said she didn't want to project her problems onto her child. Post-partum presented another set of body issue challenges for the new mum. She'd gained weight during her recovery, and then again during pregnancy. As Bette started to become more active, Ms Mitchell realised she was having difficulty getting up off the floor and that she was puffed from walking to and from her car. 'I needed to make a change, but not for my physical appearance but just for the way that I feel in the way I move. And that's when it flipped a big switch in me, like hang on, I don't have to do this stuff for just how I look,' she said. Ms Mitchell said she banned scales from her house in order to not fall down a slippery slope, and focused on wholefoods and protein. She said she also made sure she didn't have restrictions so she could enjoy things such as breakfast with friends and family. She said it was all about making sustainable lifestyle changes. It's a world away from a woman who had to weigh every single thing that went into her body. After eight months, she totally transformed her life and made the leap into something she'd never thought she'd do again. 'I used to say you'd never see me in the fitness industry again, and it was because I was still in that place with exercise and nutrition that it had to be one way,' she said. 'And that was such a toxic environment and there's so misleading things people say like you can't have a Diet Coke.' During her own journey, she realised there were no fitness content creators she could relate to — and so she decided to become that person for others. That is how The Lifestyle Reset Project was born. Ms Mitchell said she knew what it was like to be in a bigger body, and experiencing gym anxiety for the first time — something she didn't experience previously. She said she didn't want anyone to feel alone in the process of transforming their lives in a sustainable way.
