Another departure.Why did F45 Training Board Member Ben Coates leave the company?

F45 Training, a popular fitness franchise that went public in July 2021, has faced a series of challenges in recent months. The company’s troubles continue with the departure of board member Ben Coates, effective immediately on April 27, 2023. Coates had served on the board since August 2021 and was interim CEO of the company from July 2022 until March 2023, following the resignation of Adam Gilchrist, the co-founder of F45 Training, who had been CEO of the company until July 2022.

Coates, who is Australian, was appointed as interim CEO after Gilchrist stepped down from the role. As part of his separation agreement with the company, Coates will receive a payment of $500,000, equal to his base salary from April 1 to July 31, 2023. He is also eligible for vesting of the portion of his unvested monthly restricted stock unit award that was scheduled to vest on March 31, 2023.

The departure of Coates is the latest in a series of changes to the F45 Training board of directors. In February 2023, three other Australian board members left the board. The remaining board members are Gene Davis, James Feltman, Lisa Gavales, Elizabeth Josefsberg, Michael Raymond, Steve Scheiwe, Mark Wahlberg, and Raphael Wallander.

In addition to changes to the board, F45 Training has faced other challenges. The company has been unable to file its Form 10-K for its fourth quarter 2022 and full-year 2022 financials with the Securities and Exchange Commission (SEC). As of May 2, 2023, the company has yet to file the form, putting it in violation of NYSE rules. The NYSE sent a notice to the company on April 14, 2023, stating that it was not in compliance with the rules.

The company’s stock price has also been declining, trading at under $1 since April 20, 2023. In comparison, the shares of other publicly traded club companies such as Planet Fitness, Life Time, and Xponential are trading at higher prices. On May 4, 2023, Planet Fitness’ shares opened at $73.50, Life Time’s shares opened at $19.16, and Xponential’s shares opened at $32.13.

Despite these challenges, F45 Training remains optimistic about its future. The franchise plans to open over 2,000 new studios by 2025, with a focus on international markets. The company has also announced plans to launch a digital platform that will allow users to access F45 workouts online.

F45 Training was founded in Australia by Adam Gilchrist in 2013 and has since expanded to other countries, including the United States. The franchise offers high-intensity interval training (HIIT) classes that are 45 minutes long, hence the name “F45”. With over 2,000 studios in 63 countries, the franchise has become popular in recent years.

To learn more about F45 Training and its recent challenges, visit their website or read about them in financial news sources like Forbes and The Wall Street Journal.

1. “F45 Training’s IPO Looks Like A Mess As Stock Plunges, Lawsuits Fly And Financials Are Delayed” by Lauren Debter (Forbes): https://www.forbes.com/sites/laurendebter/2022/04/21/f45-trainings-ipo-looks-like-a-mess-as-stock-plunges-lawsuits-fly-and-financials-are-delayed/?sh=1c8a1f9e7be1
2. “F45 Training misses SEC filing deadline, could face NYSE delisting” by Marissa Nall (Los Angeles Business Journal, reposted on The Wall Street Journal): https://www.wsj.com/articles/f45-training-misses-sec-filing-deadline-could-face-nyse-delisting-11652819687
3. “F45 Training says it’s working to get back in compliance with NYSE rules, expects to file earnings soon” by Jonathan Maze (Nation’s Restaurant News, reposted on The Wall Street Journal): https://www.wsj.com/articles/f45-training-says-its-working-to-get-back-in-compliance-with-nyse-rules-expects-to-file-earnings-soon-11653115777