Trendy private gym to the stars suddenly goes out of business when it goes into administration and its high-flying clients are told their memberships have been canceled
- The Cremorne Club gym in Melbourne goes bankrupt
- Known for reality TV and entrepreneurial clients
- All memberships are now suspended
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A trendy gym known for its list of celebrity clients has gone bankrupt and all memberships have suddenly been suspended.
Customers of the Cremorne Club in the Melbourne suburb of Richmond received notice on Tuesday that their membership had been invalidated.
The sudden shutdown comes as Aussies feel the pinch of rising inflation and interest rates being cut on discretionary spending, including gym memberships.
The health club’s clients include Real Housewives of Melbourne reality TV star Lydia Schiavello, real estate agent and star of the reality show Survivor Fraser Lack, swimwear entrepreneur Erin Deering and founder of Bondi Sands tanning products Shaun Wilson.
Retired NRL legend Nate Myles and models Tess Shanahan and Lulu Liberman have also been spotted sweating in the gym.
Model Tess Shanahan is on the star list of clients who are members of Melbourne’s Cremorne Club gym
Model Lulu Liberman becomes active in the Cremorne Club gym, which has gone bankrupt
The Cremorne Club, which charged premium customers $430 a month, advertised itself as a “boutique health club that offers premium service.”
The top-notch facility even provided gym-goers with towels, pre-workout drinks upon arrival and protein shakes after their session.
The club’s Instagram page shows a number of pictures of Cremorne Club director Andy Brand with some of his big clients.
But this week, administrators Brooke and Bird responded to a text message informing members that the gym was now in voluntary receivership.
“At this time, we have suspended all gym memberships and temporarily suspended trading at the property pending our review of the company’s financial position,” the statement said.
As a result, customers were informed that all direct debits and membership payments have been discontinued.
Those with prepaid memberships are considered ‘unsecured creditors’ and were told a separate email will be sent out regarding their situation.
Millionaire swimwear entrepreneur co-founder of Triangl Erin Deering (center) with Fraser Lack (right) at the Cremorne Club
Bondi Sands founder of tanning products Shaun Wilson (pictured left) with Cremorne Club director Andy Brand
The shocking closure comes as two other high-profile fitness chains have already closed multiple franchises in the past 12 months.
In March, Infinite Cycle closed four of its six locations across Melbourne, Canberra and Sydney.
F45, whose Chief Brand Officer is Hollywood megastar Mark Wahlberg, is also struggling to pump itself up.
Nine gyms have gone bankrupt since last July, and many of the remaining franchised locations are now up for sale as the future of the high-intensity training chain remains in doubt.
The administrators said all Cremorne Club memberships were immediately suspended
An email from the administrators expressed some hope that they could be a buyer for the gym
Administrators of Cremorne Club have expressed the hope that a buyer is willing to take over the gym.
“We have also started talks with a party interested in acquiring the gym to reopen soon,” the letter said.
“But as the talks are still in their infancy, we cannot give any certainty at this stage.
“In the event that we can find a buyer for the company, further correspondence will be taken care of for you.”
Business watchdog ASIC said an online meeting of creditors will be held on April 21 at 10:30 am.
Those wishing to attend must provide proof of debts incurred by 4 p.m. on April 20.