The Australian fitness giant, F45 Training, which once held a dominant position in the industry, is now facing delisting from the New York Stock Exchange (NYSE), marking a stunning fall from grace.
F45 was born in Sydney’s Paddington, with its first gym founded by Adam Gilchrist and Rob Deutsch in 2012.
The brand quickly expanded into the United States in 2015. In a pivotal moment, Hollywood actor Mark Wahlberg’s investment firm, along with another investor, FOD Capital, acquired a minority stake in the business in 2019.
Before the company’s NYSE listing in July 2021, co-founder Rob Deutsch sold his stake for an estimated US$145 million (A$224 million). At the time of the listing, F45’s shares were valued at $US16 ($A24.75) each, giving the company a total valuation of US$1.4 billion (A$2.17 billion).
However the shares had plummeted to just US$0.047 (A$0.08) apiece, leaving the business with a paltry total value of US$3.85 million (A$5.96 million).
The downfall
The downfall of F45 can be attributed to a series of revenue reporting and accounting errors, leading to the departure of CEO Adam Gilchrist and other key executives and directors in July 2022.
In an official statement, the NYSE announced, “In the opinion of the exchange, the company’s common stock is no longer suitable for continued listing and trading on the NYSE.”
This decision came after F45 was notified that it had violated NYSE listing rules due to delays in filing financial accounts and because its share price had traded below US$1 for more than 30 consecutive days.
HIIT classes
F45, renowned for its high-intensity interval training (HIIT) classes, operates primarily through a franchise model and boasts over 2,000 studios in more than 60 countries worldwide.
In Australia, which has nearly 500 F45 gyms, the brand has faced multiple closures this year, with dozens more gyms up for sale.
Although Adam Gilchrist has departed, Mark Wahlberg still sits on the F45 board and holds the title of Chief Brand Officer.
