‘I can save that gym’: Billionaire Adrian Portelli again eyes takeover of Derrimut empire

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Less than a week after Adrian Portelli backed out of his bid to save the floundering Derrimut 24:7 Gym empire, the Melbourne billionaire has once again teased his interest in “buying the whole lot”.

In a post to his half a million Instagram followers on Friday, Portelli responded to news the gym chain had officially gone into administration, saying he would “put a stop to the sharks” circling the business.

Portelli confirmed to The Age on Friday that he had lodged a formal expression of interest with HM Advisory, the insolvency firm currently in control of the business, to buy it. He declined to reveal the details of his offer or the amount he was willing to pay.

“It’s true, I didn’t see eye to eye with the previous owners,” he said in his social media post.

“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.”

On Thursday, The Age revealed Derrimut’s founder Nick Solomos had appointed an administrator to the largest company within the fitness empire.

In an all-staff missive, employees were told it was business as usual for the gym chain, which is estimated to have racked up nearly $30 million in debts.

Stephen Dixon, partner of HM Advisory, has been appointed administrator, according to documents filed with the corporate regulator on Thursday.

In September, Portelli confirmed to The Age he was in negotiations to take over the company after taking to social media to share his interest.

“We’re currently in negotiations to purchase a stake in the business, which will include assisting in paying off the debts and keeping doors open for the 800 employed staff and the hundreds of thousands of members,” Portelli said at the time.

Speaking to The Age on Friday, Portelli said the gym chain was “treading water” financially, and despite putting up money to keep the business afloat in the preceding weeks to finalise a deal with Solomos, the process was fraught.

Nick Solomos’ Derrimut Gym has entered into administration.

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

Since hearing about administrators and other parties were interested in throwing the business a lifeline, however, Portelli said he would put a stop to the “sharks coming out” 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.”

Portelli said the gym empire entering administration has now made the process easier for him, describing himself as a “bargain hunter”.

“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,” he said.

“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. I’m a bargain hunter.”

Adrian Portelli (centre) said the Derrimut gym chain was “treading water” financially.

The original Derrimut 24:7 Gym, based in Melbourne’s north-western suburb of Derrimut, was founded in 2010.

Portelli confirmed that if he is successful in acquiring the business, there will be no change for members, though he does hope to remove the gym’s “bad boy image”.

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

Nick Solomos was contacted for comment.

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