F45 losses soar, franchise sales cancelled | Colin Kruger
Embattled fitness group F45 said that more than 300 US franchise sales have been cancelled due to the collapse of external financing last month, but it assured investors that financiers remain supportive of its operations as it reported a $US38.5 million loss for the June quarter.
“The terminations were due to the inability of franchisees to access the financing facilities, we announced that the end of [the first quarter].” The Australian-founded group which listed on the New York Stock Exchange in July last year has seen its share price collapse more than 90 per cent. This followedlast month that forced the departure of its high-profile chief executive Adam Gilchrist and half its staff as the company slashed sales and earnings forecasts and warned it might not stay within its debt covenants.
Last month, F45’s share price tumbled as low as $US1.35, more than 90 per cent below the $US16 paid by investors in July last year. Shares are 2 per cent lower at $US1.98 in after-hours trading.
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