Mega gym chain F45 has lost its CEO and let go of a bunch of employees leading to its shares experiencing a massive drop on the New York Stock Exchange. Lighting a candle next to my dumbbells as we speak.
According to The Sydney Morning Herald, shares dropped to US$1.35 (around AUD$1.93) on Wednesday. That’s a fall of around 60 per cent, which is certainly an oof.
The news came after co-founder and CEO Adam Gilchrist left his role. No, not the cricketer.
He’ll be sticking around on the company’s board and will also be paid around AUD$10 million ‘cos of his new role’s terms per News.com.au. So not feeling too bad for him right now.
While the company is currently headquartered in the US, it was founded right here in Aus back in 2013 and has been the site of thousands of gym selfies since.
In particularly rough news though, 110 workers are also losing their jobs. That’s 45 per cent of the company’s workforce according to the SMH.
The company also reckons its yearly revenue could be down by around half what it expected. It’s a possible low of US$120 million (around AUD$170 million).
Amidst the news, fellow F45 co-founder and former owner Rob Deutsch posted a spicy Instagram about the whole messy situation.
“Never in my wildest dreams could I have imagined this. When I exited, and sold out of F45, I left a healthy, phenomenal, beast of a business,” he said.
“All the way from the company culture to the heart beat of the business… The workouts. F45 was special.”
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He also specifically shouted out the staff who’d lost their jobs, as well as franchisees.
“I genuinely hope all of the 110 layed-off staff, find happiness and opportunities elsewhere,” he said.
“For those OG’s, I want to personally thank you for your blood, sweat and tears. You are the reason F45 was special. Time has proven that.”
The company’s CFO Chris Payne said the sitch wasn’t the end of F45 though. Breathe a sweaty sigh of relief.
“Despite the headwinds, F45’s business fundamentals remain strong and we are as excited as ever to continue bringing the world’s best workout to a growing base of members every day,” he said per Perth Now.
Sir, everyone knows the world’s best workout is going for a hot girl walk while sipping on a silly little iced beverage but go off I guess.
If you’re not a dedicated F45 fan — despite the many hundreds of gyms in Aus — it’s best known for 45 minute HIIT workouts. And Mark Wahlberg is such a fan that he invested loads in the company. He’s also a board member.
While he’s already sold tens of millions of dollars of shares, he still owns around 1.66 million shares in the company according to the SMH. Sorry Mark.
At the moment it’s unclear whether the financial sitch will have an impact on Aussie gym goers yet, so go forth and treadmill.