Why you shouldn’t feel too sorry for the founders of cult gym F45 as one bails on the company amid share price bloodbath – as their VERY lavish lifestyles are revealed
- F45 co-founder Adam Gilchrist has stepped down from the gym franchise
- The gym’s share prices plummeted from $US3.51 to $US1.35 on Wednesday
- Co-founder Rob Deutsch said company was troubled by ‘enormous issues’
- Both men continue to lead lives of luxury despite share price bloodbath
- Mr Gilchrist and Mr Deutsch own multiple beachside properties worth millions
F45 co-founder Adam Gilchrist has stepped down from the gym franchise
It’s the cult gym that’s become a household name throughout Australia for its popular 45 minute workouts, but F45 hit a rocky patch this week with a share market bloodbath and its CEO quitting.
Despite the chaos, there’s few reasons to feel sorry for two of the company’s co-founders, Rob Deutsch and Adam Gilchrist – both being obscenely wealthy recipients of golden handshakes, owning extraordinary property portfolios and appearing to live lavish lives, according to Instagram.
Mr Gilchrist announced he was stepping down from the gym, which was founded by him and Mr Deutsch back in 2013, as the company’s share price plunged more than 60 per cent on Wednesday.
But parting ways was expensive for the company – with Mr Gilchrist handed a $10million golden handshake.
Meanwhile, Mr Deutsch, who ‘transitioned out’ of the company in 2020 with a $US2.5million ‘transaction bonus’, chimed in to note that there was ‘enormous issues’ plaguing the cult gym franchise.
The pair both still appear to live in the lap of luxury with enviable property portfolios. (Another co-founder, Luke Istomin, is famous for being Hugh Jackman’s personal trainer – and his personal life is less well documented).
Mr Gilchrist made headlines in 2021 when he made $500million alone overnight when F45 was listed on the New York Stock Exchange.
Since leaving the gym Mr Gilchrist has invested in real estate, including a luxurious home (above) in Sydney’s Northern Beaches reportedly worth $11.5million
Mr Gilchrist’s $11.5million northern Sydney property (above) boasts five bedrooms, three bathrooms and three car spaces on 354m of land
The gym founder reportedly owns a number of properties including two homes in the Sydney Northern Beaches suburb of Freshwater, an apartment block in Lennox Head and a beach pad in Byron Bay.
He and his wife purchased their three-bedroom Freshwater cottage in 2017 for $5.4million. He then tried to develop the property for $2.5million, but plans fell through when neighbours complained.
Mr Gilchrist then offered to buy his next door neighbour’s home for $14million in 2018 to settle a dispute. The offer was accepted, with the gym founder owning two homes side-by-side.
Rob Deutsch (pictured with partner Nicole Perso) flaunts his glamorous lifestyle on social media after receiving a $US2.5million ‘transaction bonus’ for leaving the gym in 2020
Mr Gilchrist also bought an apartment block on Lennox Head in the Northern Rivers region for a total of $6.2million.
He snatched up the four apartments at the complex over a period of three years, buying the first in November 2018, the next two in February 2019 and the last in November 2020.
His final property is a luxurious beach pad in Byron Bay that has stunning views of Wategos Beach, six bedrooms, four bathrooms, outdoor pool and massive kitchen.
Mr Gilchrist splashed $18.8million on the pad and uses it as a family holiday home.
Mr Deutsch also deals in multi-million-dollar real estate, including a luxurious five bedroom home worth over $4million in Burradoo, NSW
Mr Deutsch owns a formidable property empire that, while not as extensive as his business partner’s, still totals more than $20million
Likewise, Rob Deutsch has owned a formidable property empire that, while not as extensive as his business partner’s, still totals more than $20million. He sold his beachfront family home in Bronte for $17.7million last April at an auction.
He and wife, model Nicole Person, purchased the four-bedroom, double garage pad in 2018 for $11.2million.
Mr Deutsch owns five luxury apartments a block away from Bondi Beach, four of which he bought after he founded the company.
Mr Deutsch and Ms Perso share their lavish lifestyle on their Instagrams (pictured, a family trip to Budapest)
The four apartments cost him more than $7.2million, while the first one he snatched up when he was younger for $600,000.
There are also two luxury apartments in Coogee that Mr Deutsch splashed $2.1 and $2.125million on in late 2017.
The gym founder provides a glimpse into his life of luxury via his Instagram profile, where he is seen in snaps of his holiday getaways, pics with his model wife and photos with F45 backer and Hollywood movie star Mark Wahlberg.
Mr Deutsch admitted there are ‘enormous issues’ plaguing F45 after it suffered a stock market ‘meltdown’ with shares plunging more than 60 per cent.
He took to Instagram on Thursday to share his shock after learning the company’s share price had dropped 61.5 per cent.
The plunge prompted Gilchrist to step down and the gym to announce 45 per cent of its staff will be laid off – with 110 workers to be sacked.
Mr Deutsch’s Instagram post sparked an outpouring of grief from beloved F45 members with many questioning whether the gym would be able to bounce back.
‘Do you believe new leadership will pull F45 out of this “low”? I love the brand,’ one member wrote.
Mr Deutsch responded with a startling admission claiming the gym had to do a lot of work to recover lost ground.
F45 co-founder Rob Deutsch (right) claims there are ‘enormous issues’ with the gym after it suffered a stock market ‘meltdown’ with shares plunging more than 60 per cent
Mark Wahlberg (pictured, centre, with David and Candace Warner) was the second-largest shareholder in the company but managed to sell 1.1 million of his F45 shares in March and April which earned him $17.46 million ($US12.2 million)
Mr Deutsch took to Instagram on Thursday to share his shock after learning the company’s share price had dropped 61.5 per cent
‘I can’t speculate but there are some I’m [sic] enormous issues need fixing first’, he wrote.
In his Instagram post, Mr Deutsch, who stepped down as CEO and sold his shares in 2020, said he could never have anticipated what would happen to his beloved gym.
‘Never in my wildest dreams could I have imagined this,’ he wrote.
‘When I exited, and sold out of F45, I left a healthy, phenomenal, beast of a business.
‘All the way from the company culture to the heart beat of the business… The workouts. F45 was special.’
Mr Deutsch shared his sympathies with the staff who would be let go following the stock plunge.
‘Firstly – thank you to the legends who have reached out!’ he wrote.
‘Secondly – I genuinely hope all of the 110 laid-off staff, find happiness and opportunities elsewhere.
‘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’.
Mr Deutsch’s Instagram post sparked an outpouring of grief from beloved F45 members with many questioning whether the gym would be able to bounce back
F45 announced on Wednesday that Mr Gilchrist had stepped down as chairman and CEO with immediate effect, after the company’s share price plummeted by 61.5 per cent.
The New York Stock Exchange recorded the company’s shares opening at $5.02 ($US3.51) but following the shock announcement, the share price dropped to $1.93 ($US1.35).
F45 amassed a cult following for its functional, 45-minute group training workouts that combined resistance, metabolic and cardio movements in a fun and accessible environment.
When action star Mark Wahlberg attributed his impressive physique to F45 training, gym-goers across the world were intrigued.
The Daddy’s Home actor frequently promoted the franchise on social media and hosted a number of Instagram Live workouts for his fans and 19.2 million followers.
The company’s share price plummeted a massive 61.54 per cent on Wednesday from $5.02 ($US3.51) to $1.93 ($US1.35)
F45 has suffered a stock market meltdown with the company announcing its founder and CEO Adam Gilchrist would be stepping away as chairman (pictured, Mark Wahlberg (L) and Adam Gilchrist (R) on the New York Stock Exchange trading floor on July 15, 2021)
The fitness franchise has been endorsed by other high-profile celebrities including Mario Lopez, David Beckham, J Balvin, Steve Aoki, Magic Johnson, Greg Norman and Cindy Crawford.
The outgoing chairman Mr Gilchrest said he was ‘forever grateful’ to the franchise and thanked staff, investors and members for their support.
‘To the staff that have worked tirelessly since our inception, you have been incredible in your efforts, and I thank you for all of your support,’ Mr Gilchrist said in a statement.
‘To the investors that have joined us along our journey, I thank you for your commitment to F45.
Mr Gilchrist has an extensive property portfolio, including a $18.9 million beach pad in Byron Bay, next to Wategos Beach, which boasts six-bedrooms, four bathrooms and a swimming pool
International football legend David Beckham (pictured) joined the company last year
‘Lastly, I am forever grateful to our franchisees who deliver the world’s best workout each day to F45 members around the world.’
Mr Gilchrist will receive more than $10.1 million, which includes 12 months rent on his Florida mansion and 18 months of health insurance for his family, despite the company’s share price crash.
He also boasts a $14 million home in Sydney’s Freshwater, on the northern beaches, as well as an $18.8 million Byron Bay mansion a stone’s throw from Wategos Beach.
Wahlberg managed to sell 1.1 million of his F45 shares in March and April, which earned him $17.46 million ($US12.2 million).
Even before Wednesday’s plunge, F45 stock had fallen sharply since it went public on July 15 last year with an initial offer of $22.89 per share.
The company said the change in ‘macroeconomics – national output, unemployment rates and inflation – has forced a restructuring of the company.
David Beckham (pictured) is another of F45’s fans, and became a ‘global partner’ in 2021
Mr Gilchrist’s colonial-style home broke Byron Bay’s property sale record, which was previously held by the same home when it was sold in 2006 for $15.7 million
F45 confirmed it would lay-off almost 45 per cent of the company’s corporate staff (110 employees) to reduce its selling, general and administrative expenses.
‘We are taking the necessary steps to right-size our business in light of shifting macroeconomic and business conditions,’ Chief Financial Officer Chris Payne explained.
‘While we expect growth to continue, market dynamics are having a greater than expected impact on the ability of franchisees to obtain capital to develop new F45 locations.
‘In addition, recent share price performance has made it challenging for franchisees to utilize financing facilities announced earlier this year.’
Daily Mail Australia contacted F45 for comment.
F45 amassed a cult following after high-profile celebrities endorsed the franchise’s workout regimes. The Daddy’s Home actor (pictured) frequently promotes F45 to his 19.2 million Instagram followers