Celebrity trainer Luke Istomin’s fitness company goes bust,liquidator investigates

Liquidators are investigating after F45 co-founder and celebrity trainer Luke Istomin’s gym company went bust owing more than $2.6 million,including an estimated $363,000 to employees.

Liam Bailey,a partner at O’Brien Palmer insolvency and business advisory firm,is examining the circumstances that led to the downfall of Re:Union Operations,including whether there is any evidence of insolvent trading and breaches of director’s duties.

Celebrity trainer Luke Istomin set up Reunion Training after leaving F45,the company he co-founded.

Celebrity trainer Luke Istomin set up Reunion Training after leaving F45,the company he co-founded.Supplied

He told creditors he intended to report any evidence he had identified to the Australian Securities and Investments Commission.

Bailey is also investigating whether Istomin,the sole director of Re:Union Operations,engaged in “phoenix activity” by creating a new company to avoid paying creditors,including the wages and superannuation of employees.

The company provided labour hire “and other administrative services” to Reunion Training fitness centres in Sydney.

“Based on my investigations to date,there is cause to believe that the director of the company may have engaged in phoenix activity,” Bailey said in a letter to creditors last month.

Fitness trainer Luke Istomin has worked with celebrities including Hugh Jackman,Leonardo DiCaprio and Nicole Kidman.

Fitness trainer Luke Istomin has worked with celebrities including Hugh Jackman,Leonardo DiCaprio and Nicole Kidman.Supplied

Bailey said he was looking at whether there was evidence the company tried to avoid paying employee entitlements,which would leave the federal government to pick up the tab through its Fair Entitlements Guarantee safety net scheme.

He had been contacted by staff who had not been paid for 10 weeks before his appointment as liquidator.

Bailey also accused the company of sloppy bookkeeping,saying it was “evidently clear” it had failed to maintain adequate books and records as required by law.

A personal trainer,Istomin has worked with celebrities including Hugh Jackman,Leonardo DiCaprio and Nicole Kidman.

He also developed F45’s regime of 45-minute high-intensity interval and circuit training classes based on the motto:“no mirrors,no microphones,no egos”.

Istomin did not respond toThe Sun-Herald’s questions. But he has spoken about the turmoil engulfing F45,the company he founded in 2013 with Rob Deutsch,but left in 2016. Istomin later set up his own fitness business,Reunion Training.

Shares in F45,which is backed by actor Mark Wahlberg,plunged on Wall Street in late July after the company slashed its expansion plans,cut jobs,and announced chief executive Adam Gilchrist was stepping down.

“I think they bit off more than they can chew,” Istominsaid in response to the turmoil inside F45.

The financial troubles engulfing Istomin’s gym business come as United Workers Union,which represents health and fitness professionals,called for stronger regulation of labour hire licensing and the fitness industry.

UWU allied industries director Godfrey Moase said it was a violation of an employer’s obligations to ask staff to forego wages due to cashflow problems:“If you can’t afford to pay wages,then you can’t afford to be in business.”

Bailey told creditors he was investigating whether Reunion Training chief executive Simon Philis was a shadow director given his influence over the company affairs.

Philis last yeartold The Daily Mail he had lost 29 kilograms in 14 months following the company’s exercise and nutrition program.

Bailey said he believed the company had been insolvent since its incorporation in February 2020,incurring continuing losses and owing more than half a million dollars in federal and state taxes.

Istomin may be liable for the company’s entire debts of $2.6 million if it is shown the company was insolvent since it was founded and if he was responsible. Philis might also be liable if he is shown to be a shadow director.

“It is my intention to shortly report the significant breaches identified within this report to ASIC,” Bailey said.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories,analysis and insights.Sign up here.

Andrew Taylor is a Senior Reporter for The Sydney Morning Herald.

Most Viewed in National