F45 Co-Founder, Former CEO Adam Gilchrist Resigns From Company’s Board
Gilchrist departed from his CEO role last summer but has now fully exited F45
Adam Gilchrist, who co-founded functional fitness brand F45 Training and had served as its CEO, is no longer on the company’s board of directors.
Gilchrist’s resignation was effective April 21 and was noted in F45’s recent SEC filing.
Gilchrist, who founded F45 in 2013, stepped down as CEO and president of F45 last summer, the same time the company announced strategic plans to address ongoing macroeconomic uncertainty.
In response to that news and the company’s lowered 2022 outlook, shares of F45 plummeted 49% in after-hours trading last year.
“When we founded F45, we made it our principal goal to change people’s lives by creating the world’s best workout. 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,” Gilchrist said in a statement at the time of his departure last year.
F45 recently named Tom Dowd as CEO and Mark Wahlberg as chief brand officer.
The news of Gilchrist’s departure comes on the heels of F45 receiving a non-compliance notice from the New York Stock Exchange last month, a result of the fitness franchisor’s failure to timely file its annual Form 10-K report for the year ending December 31, 2022, with the SEC.
While the note has no immediate effect on the NYSE listing of F45’s stock, the fitness company has six months to file the 2022 Form 10-K with the SEC to regain compliance with listing standards.
F45 has faced significant challenges and changes as of late.
Although the fitness brand raised over $300 million and had a $1.4 billion valuation when it went public in 2021, by 2022, F45 was conducting lay-offs and lowering revenue targets, with shares diving to $1.25.
The brand has also been plagued by lawsuits, including one filed by former soccer pro David Beckham, who sought $20 million in damages after alleging the F45 failed to pay him on time for a marketing campaign in 2021. He was joined by Greg Norman, a former professional golfer, who made similar claims.
When F45 released its third-quarter 2022 financials, it announced that a special committee would review and evaluate alternatives to an unsolicited $385 million take-private bid by Kennedy Lewis Investment Management.
As 2022 ended and 2023 began, F45 announced the closing of a $90 million subordinated debt facility provided by a group of existing investors led by Kennedy Lewis affiliates. According to the functional fitness franchisor, the financing transaction was intended to improve F45’s balance sheet and increase liquidity for long-term growth.
F45 is expected to release its next earnings report May 15.
