‘They bit off more than they could chew’: F45 founder weighs in on turmoil | Colin Kruger
F45 shares tumbled on Wednesday on Wall Street after it announced it had slashed its expansion plans to prioritise profitability and cashflow generation. It also revealed that CEO Adam Gilchrist was stepping down.
Luke Istomin, who developed F45’s core regime of 45-minute functional high-intensity interval and circuit training classes, left in 2016 over creative differences. “With a bit of money they were making at the time, and the plan to grow rapidly, very rapidly, I think they bit off more than they can chew,” Istomin, who co-founded the company with Rob Deutsch in 2013, said.
F45 said this week that $US250 million worth of previously announced lending facilities to fund franchisee expansion “will not be available” and said market dynamics meant franchisees were also having trouble finding funding to develop new operations.F45 also received a waiver from its banks for any potential loan defaults in the coming months.
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