Derrimut 24:7 Gym Risk Report

🛡️ Financial & Liquidity

Derrimut 24:7 Gym is grappling with significant financial challenges, primarily stemming from a hefty tax obligation. The company faces potential financial instability due to this immense liability, which threatens its cash flow and operational continuity. This tax issue and previous financial practices have raised concerns about its overall financial health.

• The gym chain is facing an $11 million tax claim by the Australian tax authority 🗓 July 2025.
• Additionally, the Australian Taxation Office has brought a $14.6 million tax debt case against the company 🗓 July 2025.
• Revenue may be impacted, as highlighted by controversies surrounding membership charges during lockdowns 🗓 August 2021.

⚖️ Legal & Regulatory

Derrimut 24:7 Gym is embroiled in legal circumstances concerning significant tax debts. The financial challenges are compounded by potential legal and regulatory ramifications. Legal actions and compliance with tax obligations will remain crucial for resolving these issues and mitigating risks.

• Derrimut 24:7 Gym has taken legal action against the ATO concerning a $14.6 million tax debt 🗓 July 2025.
• Past issues also involved detectives investigating claims of financial mismanagement within the company 🗓 June 2022.

🏗️ Operational & Business Continuity

Operational challenges at Derrimut 24:7 Gym extend beyond financial difficulties, with a focus on maintaining continuity amid expansion and reputational management. The large scale of its operations could lead to potential risks if not managed efficiently.

• The popularity of mega gyms has caused logistical issues, highlighted by reports of traffic chaos and parking problems 🗓 September 2024.

📜 Innovation & R&D

In recent years, Derrimut 24:7 Gym has continued innovating, revamping existing spaces, and building larger facilities. These initiatives are crucial in sustaining member satisfaction and staying competitive.

• A new gym in South Australia was touted as the largest in the southern hemisphere, underscoring Derrimut's goal of scaling and innovation within the fitness industry 🗓 June 2023.