F45 co-founder Adam Gilchrist appears to have kept a low profile since leaving the company last month, as the Australian-born fitness business fights back from a bruising financial report.
Gilchrist parted ways with F45 in late July, nine years after founding the gym franchise in Sydney with Rob Deutsch and bringing its high-intensity workout system to the world.
In an investor update, F45 last month declared Gilchrist (not to be confused with the cricketer) had stepped down from his role as CEO, while remaining on its board of directors.
“Adam has done a tremendous job in leading F45, and I want to thank him for his countless contributions and innovations,” Richard Grellman, F45’s lead independent director, said at the time.
“We are fortunate that we will continue to benefit from his ongoing counsel and insights during this transition and well beyond as a member of our Board.”
The notice was accompanied by a harsh update to F45’s full-year revenue projections, which fell from between US$255 million ($364 million) and US$275 million ($392 million), to between US$120 million ($171 million) and US$130 million ($185 million).
The downturn was attributed to a reduction in projected franchise openings, as share price fluctuations caused a significant hit to F45 financing operations.
F45 said a US$250 million ($364 million) financing facility it intended to extend to franchisees opening new studios “will not be available despite strong demand from franchisees,” dampening its expansion plans.
More than 100 employees were also let go in response to the harsh financial forecast.
Second-quarter results, released this month, show the company’s reported net loss hit US$34.9 million ($50.8 million).
“While the recently announced strategic changes are significant, we continue to be as confident as ever in the future of F45,” interim CEO Ben Coates said.
As the company looks to regain its growth trajectory, Gilchrist has reportedly taken steps to lower his public profile.
The Daily Mail reports Gilchrist has removed his social media accounts, and that Rob Deutsch, who exited F45 ahead of its 2020 IPO, has not directly communicated with his co-founder in two to three years.
Deutsch added that Gilchrist had changed his phone number, making him “tough to get a hold of nowadays”, the publication reported.
SmartCompany has contacted a F45 representative for comment.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
