‘Lambo Guy’ poised to offer lifeline to embattled Derrimut Gym empire

2 hours ago 2

Billionaire businessman Adrian Portelli is swooping in with a possible lifeline for the struggling Derrimut 24:7 Gym empire, which is facing liquidation and spiralling debts to the Tax Office, staff and suppliers.

Portelli, who is famously nicknamed “Lambo Guy” and is a prolific buyer on The Block, confirmed to this masthead that he is in negotiations to own part of Derrimut.

Solomos (left) with Adrian Portelli during an auction on The Block.

It comes after he posted a cryptic video on Instagram on Wednesday about having his first day at work at the company.

“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.

An investigation by The Age revealed last week that the rapidly expanding Melbourne gym empire has been failing to pay taxes, staff superannuation, and hundreds of businesses and landlords, while its owner, Nick Solomos, has been withdrawing millions for personal expenses over several years.

Solomos’ company accounts have been used for $5000-a-week pocket money, to make mortgage payments on his $40 million property portfolio, to fund more than $30,000 a week in payments to his ex-wife and to give luxury cars to senior staff.

Portelli declined to share exact figures on his financial contribution nor the size of his stake in the business.

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

He noted that Derrimut had a “very complex structure with multiple entities”.

“So our teams are working together to make sure we’re on the best possible foot going forward and bringing this iconic business back to life,” he said.

“My first task will be to ensure all suppliers and tax debts are paid.”

The Australian Tax Office has been seeking to liquidate Derrimut’s primary operating entity as well as a now-dormant company to claw back $15.4 million in tax debts, unpaid superannuation and penalties.

It’s estimated that Solomos would need at least $30 million to clear debts to the Tax Office and creditors of his three main entities – including landlords, power companies, equipment suppliers and trades contractors.

The company has copped lease-breach notices at many of its gyms due to unpaid rent and has been locked out of five sites across Victoria and South Australia since July – including two that had not yet opened – leaving members chasing refunds.

Nick Solomos’ Derrimut Gym empire is under severe financial pressure.

Solomos has been scrambling to secure financing to save his business from liquidation, telling creditors this month that a deal is close.

Portelli had been rumoured for weeks to be involved in a bail-out. He did not comment when approached twice last week by The Age. Another prominent financier said to be involved squashed the suggestion when asked by this masthead.

Portelli appeared during last year’s The Block finale side-by-side with Solomos, who was dubbed “Diamond Guy” by the Daily Mail for his large, sparkling gold chains.

Portelli’s Instagram video posted on Wednesday shows him pulling up to a Derrimut Gym building in a black van, carrying a box labelled “first day at work”.

The businessman made his debut on the Australian Financial Review’s Young Rich List in 2023, with his net worth put at $1.295 billion in 2024. He runs LMCT+, a lottery-like business that gives away cars, cash and homes to subscribing customers.

Solomos was contacted on Wednesday morning for comment. He has not responded to The Age’s questions since numerous approaches last week.

News of Portelli’s planned involvement in the Derrimut business comes as two separate lenders to the Derrimut business appointed receivers to sell two properties owned by Solomos.

The properties, owned through the entrepreneur’s private company, Solomos Assets, include the gym group’s head office in Derrimut and a retail lot in an open air shopping precinct in Newcomb Geelong, which houses one of the chain’s gyms.

Portelli is currently fighting allegations in Adelaide of running lottery competitions without a licence. The ABC reported that Portelli and his company pleaded not guilty and said the court action was a waste of taxpayers’ money.