The financial meltdown surrounding Derrimut 24:7 Gym has entered a new and alarming phase, as receivers move to sell three of its largest properties in Melbourne in a desperate bid to recover spiraling debts. What was once hailed as a powerhouse in Australia’s fitness industry now stands on the edge of collapse — tangled in unpaid taxes, angry creditors, and frustrated gym members.

According to The Age, two of Derrimut’s major gyms — located in Thomastown and Ravenhall (marketed as Caroline Springs) — along with its corporate head office in the suburb of Derrimut, have been placed on the market by appointed receivers Rodger Reidy. Expressions of interest for the properties are due by 4 December, with the total sale expected to fetch around $30 million.

While Derrimut leases most of its 24 nationwide gym locations, these three sites are owned by entities linked to its founder Nick Solomos. Sources indicate that Solomos has been scrambling to secure new financing to stop the company’s liquidation, even as the Australian Taxation Office (ATO) pursues court action over more than $12.5 million in unpaid tax, superannuation, and penalties.

The ATO’s liquidation case against Derrimut’s main trading entity has already been adjourned several times by the Federal Court of Australia, giving the embattled founder time to raise emergency funds. However, as the situation worsens, the window of opportunity seems to be closing fast.

Adding to Derrimut’s financial woes, a growing list of high-profile suppliers and partners — including Life Fitness, Bench Fitness, Melbourne United Basketball Club, ReturnToWorkSA, AGL Energy, and Del-Re National Food Group — have joined the creditor action, collectively demanding over $2 million.

In September, The Age reported that Derrimut had failed to pay hundreds of suppliers, landlords, and even staff superannuation. More shockingly, millions of dollars were allegedly withdrawn for personal use, including luxury vehicles, mortgage payments, and weekly cash allowances for senior management.

Meanwhile, the company’s once-loyal members — estimated at over 200,000 across Australia — are voicing growing frustration over deteriorating gym standards. Online reviews and social media complaints describe “dirty showers,” “broken equipment,” and “missing essentials like toilet paper and hand towels.” Some reports even allege WorkSafe Victoria flagged concerns about hygiene and maintenance standards.

Ironically, even amid these complaints, Derrimut’s gyms in Thomastown and Ravenhall were still promoting aggressive membership offers this week — including an annual plan for $399 on social media. Many users called the promotions “tone-deaf,” given the chaos unfolding behind the scenes.

In South Australia, Derrimut is facing yet another crisis. The company is currently in dispute with a landlord attempting to close its Melrose Park location, while a construction firm, Ikonstruct SA, has demanded payment for unfinished building works.

As the storm rages, one name has emerged as a potential savior — businessman Adrian Portelli, widely known as the “Lambo Guy” for his luxury car giveaways and flamboyant public persona. Portelli confirmed last month that he was in talks to acquire a stake in Derrimut, although he admitted the deal was far from finalized.

“We haven’t put pen to paper just as yet,” Portelli said, “but work has begun in the background.”

He went on to describe Derrimut’s corporate setup as “a very complex structure with multiple entities,” hinting that any acquisition or rescue deal would involve untangling a web of financial relationships and ownership layers.

Industry experts warn that even a high-profile investor like Portelli may find it difficult to revive Derrimut’s reputation, given the depth of its debts and the mounting legal challenges. Insolvency experts note that once the ATO begins winding-up proceedings, it becomes difficult for companies to recover unless new ownership and funding are secured almost immediately.

Still, many long-time members and staff are holding onto hope that the iconic brand — famous for its slogan “No Judgement, Just Results” — can somehow find a second wind. Derrimut 24:7 Gym was once celebrated as a homegrown Australian fitness success story, with massive facilities, affordable memberships, and an energetic social media presence that helped build a cult-like following.

Today, however, that story stands as a cautionary tale about rapid expansion, financial mismanagement, and the dangers of blurred lines between business and personal spending.

As the receivership process unfolds and offers roll in, the coming weeks could determine whether Derrimut 24:7 Gym survives as a brand — or becomes another footnote in Australia’s turbulent fitness industry.

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