Bailey also accused the accounting company of careless accounting, saying it was “patently clear” that it had not kept proper 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 regimen of 45-minute high-intensity interval and circuit training classes based on the motto: “no mirrors, no microphones, no egos.”
Istomin did not respond to The Herald of the Sunquestions . But he has spoken about the turmoil surrounding 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 of F45, which is backed by actor Mark Wahlberg, plunged on Wall Street in late July after the company cut expansion plans, cut jobs and announced chief executive Adam Gilchrist would step down.
“I think they bit off more than they can chew”, Istomin said in response to the turmoil within F45.
Charging
The financial troubles engulfing Istomin’s gym business come as the United Workers Union, which represents health and fitness professionals, called for stricter regulation of labor contracting licenses and the fitness industry.
UWU allied industries director Godfrey Moase said it was a violation of an employer’s obligations to ask staff to forgo salaries due to cash flow problems: “If you can’t pay salaries, then you can’t afford to be In the business”.
Bailey told creditors he was looking into whether Reunion Training CEO Simon Philis was a shadow director given his influence over company affairs.
Phillies last year saying The Daily Mail had lost 60 pounds in 14 months following the company’s exercise and nutrition program.
Charging
Bailey said he believed the company was insolvent since its incorporation in February 2020, incurring ongoing losses and owing more than half a million dollars in federal and state taxes.
Istomin may be liable for all of the company’s debts of $2.6 million if the company is shown to have been insolvent since it was founded and he was responsible. Philis could also be held responsible if he is shown to be a shadow director.
“It is my intention to inform ASIC shortly of the significant violations identified in this report,” said Bailey.
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