Landlord evicts Derrimut 24:7 from Adelaide premises
Embattled fitness chain Derrimut 24:7 is understood to have been evicted from its premises at Angle Vale in Adelaide’s outer northern suburbs.
Adelaide's The Advertiser reported that members were "kicked out mid-workout" with trucks arriving to remove equipment from the site.
Derrimut 24:7 Gym Angle Vale posted on its Instagram at around 10am on Wednesday that the gym had closed permanently an hour earlier, advising “we regret to inform you that our lease at the Angle Vale location has not been renewed,”
However, landlord Tony Syrianos, Director of Leasecorp Group, disputed this, telling The Advertiser it closed because the tenant owed about $220,000 of unpaid rent including outgoings.
Syrianos said the situation was similar at another of his properties, the gym’s Seaford branch, and he had never had a tenant rack up so much unpaid rent, advising "the termination has occurred not because of a renewal not granted - it’s actually unpaid rent."
“It’s unfortunate that it’s happened, but it is what it is.”
Commenting on a local Facebook group, one Derrimut customer said she “literally got kicked out randomly mid workout” on Wednesday morning, adding "don’t think half the workers knew it was coming."
The closure of the Angle Vale site follows reports that the Australian Taxation Office (ATO) is chasing more than $11 million from Derrimut 24:7 Gym and its owner Nikolaos Solomos.
Earlier this year, confusion surrounded of the chain announcing that its operating hours would be reduced
Derrimut 24:7 then advised that branches would transition back to 24-hour access after the implementation of a fob tag access system.
In response to questions from The Advertiser regarding the circumstances of the closure and installation of 24/7 fob entry at other branches, a Derrimut marketing manager said by email: “If you haven’t got news to write about, go look at the state of the world and report on something worthwhile.”
Announcing the closure on Instagram, the gym said memberships could be placed on hold until a new Elizabeth gym opens in the coming weeks.
The pst advised "refund options are available.
“We sincerely thank you for your support and understanding, and we look forward to welcoming you to our nearby locations soon.”
As of today, Solomos released a video aiming at placating staff and customers, saying his business was “stronger and bigger than we’ve ever been before.”
In the video, Solomos stated “I wanted to address some things that have been out there in the media.
“Some things I can talk about, some things I can’t."
He advised "obviously, the big one is ATO debt. We’ve got the best in Australia working on that issue.
"Look, the reality is, we’ve been here for 15 years, the only thing I can say, we’re not going anywhere.”
Documents filed in the Victorian County Court have alleged Solomos owes the ATO more than $11.3 million in unpaid taxes.
Explaining what he called “the latest debacle” at the chain's Angle Vale location, Solomos stated "we made an error, we missed the boat on that.
“We’ve had to relocate that gym, and we’ve paid the price for it.
“But we’re not doing a runner - we’re giving refunds, memberships on hold, or Munno Park or Elizabeth are opening up.
“I always find a way or make a way - I believe in myself, and we’re now rectifying the things that we’ve done in the back-end to make sure certain things don’t happen again.
“We’re stronger and bigger than we’ve ever been before, and the gyms that youse are all at, the locations are just jamming.”
Images: Equipment being removed from Derrimut 24:7 Angle Vale on Wednesday (top) and the notice posted by the gym (below).
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