Former fitness training provider collapses into voluntary administration following ATO wind-up application

Former fitness training provider collapses into voluntary administration following ATO wind-up application

 

A former fitness training provider that operated for 30 years has entered voluntary administration, following an application from the Australian Tax Office to wind up the companies.

Based in Queensland, the Fitlink Group was established in 1985 and provided fitness education and training as well as a labour hire business in the health and fitness industry.

Hall Chadwick was appointed to manage the administration of Fitlink Australia Pty Ltd, Fitgroup Australia Pty Ltd and Fitlink Employment Services Pty Ltd on November 2.

A spokesperson for Hall Chadwick told SmartCompany the assets of the companies were sold earlier this year and as such, the three businesses are no longer trading and do not employ staff.

The spokesperson also confirmed the companies do not own the website www.fitlink.edu.au.

In November 2014, Reeltime Media Limited informed its shareholders of its intention to pay $10 million to purchase the Fitlink Group.

They  said at the time that the Fitlink Group had educated approximately 30,000 graduates in Australia and New Zealand and had offices in Brisbane, Auckland and New Delhi.

Reeltime Media said at the time the founder and chief executive of Fitlink, Tim Boman, would continue with the business.

However, it is not clear if the transaction took place, with Reeltime Media itself entering voluntary administration in April this year.

Reeltime Media executed a Deed of Company Arrangement in July and according to its website, is currently seeking “investment opportunities in the digital media space”.

The appointment of administrators follows an application to wind up Fitgroup Australia and Fitlink Employment Services by the Australian Tax Office in the Federal Court in Queensland on October 7.

According to the spokesperson for Hall Chadwick, this application led to the director of the companies, placing the companies into voluntary administration.

The winding up application for the two companies was scheduled to be heard on November 13, although the administrators have arranged an adjournment with the ATO until December 3.

As previously reported by SmartCompany, there has been a marked increase in the number of wind-up applications being filed by the ATO in recent months.

In August, figures compiled by Sydney insolvency practitioner Jamieson Louttit showed 396 applications to wind up companies were filed with the Australian Securities and Investments Commission in July.

This was a decrease from May when 582 applications were filed but the data showed the number of wind-up applications over the previous four months was the highest on record for that period of time.

Louttit previously told SmartCompany wind-up applications “are a very, very good lead indicator for insolvencies”.

“Everyone tracks insolvency appointments but wind-up applications show where appointments will occur next month, and the month after that,” he said.

SmartCompany contacted the operator of fitlink.edu.au but did not receive a response prior to publication. 

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