F45 stock price: Adam Gilchrist net worth, $18.8m property in Byron Bay, $14m buy in Sydney
As F45 shareholders continue to reel from the sudden drop in the share price on the New York Stock Exchange, the Australian company’s co-founder’s lavish lifestyle has come to light.
Adam Gilchrist, who founded the fitness empire in 2013 with Rob Deutsch, recently announced he was stepping down as the company’s CEO and chairman of the board.
In the same statement, the company revealed that it would lay off 110 employees and reduce operational expenses.
The moment seemed a world away from a heady day just over a year ago, when the pair won $64 million each in cash as part of a deal with actor Mark Wahlberg, who became an investor in the gym franchise.
Details of Wahlberg’s investment became public when F45 listed on the New York Stock Exchange in July 2021, a move that netted Mr Gilchrist $500 million overnight and played a crucial role in pushing businessman in the market. Australian Financial Review Rich list.
This week’s statement sent F45 stock price into a tailspin, plunging more than 60% to US$1.31 (A$1.87) on Wednesday (US time).
At press time, the stock had risen slightly to US$1.79 (A$2.56), according to Market Watch.
Over the years, Mr Gilchrist has used his wealth to amass an extensive property profile across Australia, with the business tycoon making some truly outlandish offers along the way.
Sale of 14 million dollars after a neighborhood dispute
Mr Gilchrist caused a stir among his Freshwater neighbors in Sydney’s northern beaches in 2018 after he offered $14million to his neighbour’s house to settle a minor dispute.
The F45 founder and his wife paid $5.4million for a three-bedroom cottage on Ocean View Rd in 2017, but soon ran into trouble with neighbors after they tried to develop the property.
Several neighbors objected to the $2.5 million development plans, saying they did not respect building heights or boundary controls.
This led to the proposal being withdrawn, although Mr Gilchrist claimed he would have been victorious in court.
“If we had gone to court to fight, we would have won and crushed everyone,” he said. Sydney Morning Herald at the time.
He opted instead to buy his neighbor’s much bigger house, offering $14 million for the 440 sq m property.
The 2018 sale was a record for the suburb, smashing the previous sale price of $800,000 in 2003.
Mr Gilchrist’s property ambitions have not only focused on Sydney, with the former CEO having purchased an entire building in the seaside village of Lennox Head in New South Wales’ Northern Rivers region.
Over a two-year period, he managed to snap up all four beachfront units, built in the mid-1970s, for a total of $6.2 million.
The apartment was purchased in November 2018 for $1.05 million, with the two street-facing units at the back of the block being purchased a few months later in February 2019 for a total of $1.95 million.
The fourth block proved to be the most difficult to buy, with the owner previously stating that “everything in this world is not for sale” and saying that his reluctance to sell “isn’t about the money”.
Eventually, Mr. Gilchrist snapped up the last apartment for the massive sum of $3.2 million in November 2020, with the previous owner paying $622,500 in 2004.
One of the F45 founder’s biggest purchases was a sprawling beach in Byron Bay that opens up to Wategos Beach.
The six-bedroom, four-bathroom home was purchased in March 2019 for $18.8 million.
The colonial-style house offers beach views, a swimming pool, a large kitchen and an open-plan living room.
Mr Gilchrist said the property would be used as a holiday home for his family.
“Enormous problems” behind the fall of the F45
F45 co-founder Rob Deutsch said that “never in his wildest dreams” could he have imagined the sudden downfall of the fitness empire he launched in 2013.
Mr Deutsch, who stepped down as CEO of the company and sold his shares in 2020, was stunned by recent developments within the company.
“Never in my wildest dreams could I have imagined this,” he wrote on Instagram.
“When I came out and sold F45, I left behind a healthy and phenomenal beast of business. From the corporate culture to the heartbeat of the business… The workouts. F45 was special.
“I sincerely hope that all 110 laid-off employees find happiness and opportunities elsewhere.”
Deutsch’s post received dozens of comments from F45 franchisees and dedicated gym attendees, providing insight into what contributed to the company’s collapse.
The former Sydney banker said there were ‘huge issues to work out’ when asked if F45 could bounce back and seemed to agree with a Hawaiian F45 coach who suggested the decision to going public was a mistake.
The account of an F45 franchise in Canada also appeared to claim the company made decisions during the Covid shutdowns that were “crushing”.
“We want you to always be involved,” F45 Training Doon commented.
“The decisions they’ve made during damaging shutdowns have been overwhelming for franchises. It’s mind blowing what the last 2 years have been like, especially if you opened during the pandemic. Just absolute hell in Canada… Hopefully there will be a positive twist.
Mr. Deutsch replied: “I hope so too.”