Roxy’s Bootcamp goes into provisional liquidation, $10m house giveaway deadline falls apart
A bitter dispute that emerged after a widely publicised PR stunt involving Roxy Jacenko has taken another turn as the company involved was plunged into liquidation.
Companies
Don't miss out on the headlines from Companies. Followed categories will be added to My News.
A bitter dispute that emerged after a widely publicised PR stunt involving Roxy Jacenko has taken another turn as the company involved was plunged into liquidation.
On Wednesday, the Supreme Court of NSW ordered that provisional liquidators take over Roxy’s Bootcamp Pty Ltd.
Then late on Thursday, an ASIC notice revealed that Andrew Blundell and Simon Cathro of restructuring firm Cathro Partners had taken over the business and that it is now in liquidation.
Roxy’s Bootcamp was involved in an already controversial and sensational $10 million competition, of which the eponymous Jacenko, a well-known PR maven, was the figurehead.
Ms Jacenko, alongside her then business partners Kassim Alaouie and Youssef Tleis, encouraged punters to sign up for the company’s online business workshops through offering a generous giveaway prize.
The Roxy’s Bootcamp winner would receive a luxurious multimillion-dollar waterfront home at Sydney’s Cronulla valued at $10 million, which featured heavily on the Roxy’s Bootcamp website and is described as having an “opulent Mediterranean aesthetic,” with a pool and double garage.
Other prizes included a Rolex watch and Hermes Birkin bag, both valued at $20,000, and also $250,000 cash, the competition’s terms and conditions stated.
The winners were meant to be drawn today, with the announcement slated for Saturday. But before that could happen, the business entered liquidation.
Mr Blundell, one of the provisional liquidators, told news.com.au on Friday “It’s not a full blown liquidation”.
“(It’s where) an independent person (has) come in to maintain the status quo.”
Even though the business is not technically shut down, Mr Blundell said the $10 million giveaway “is not going to occur today”.
“My investigations are ongoing,” he added.
Ms Jacenko’s lawyer, Gregory George, told news.com.au his client had made the application for the provisional liquidation.
In a statement to news.com.au, Ms Jacenko said she had personally been left out of pocket over the debacle and would pay back refunds to customers.
“I stand by my offer to refund customers and as a result of this, $684K of my own, personal funds remain in my solicitor’s trust account,” she said.
Ms Jacenko wanted to put a stop to the promotion due to a subclause which stated the prize would only be delivered if the competition achieved more than $11.5 million in revenue.
“In the event that the promotion revenue is less than the minimum revenue amount the parties agree that the property will not be made available and the company will not be required to acquire the property,” the clause stated.
“I suggested to Mr Tleis and Mr Alaouie that we halt the promotion, we issue refunds and I was willing to wear the costs I had incurred on behalf of the company – this was rejected and I was persuaded to keep going,” Ms Jacenko claimed.
“I loaned the company in excess of $100,000 in order to ensure that sufficient funds were available to the company.”
However, Mr Tleis denies any wrongdoing and says he has also been left out of pocket over the ordeal.
Do you know more or have a similar story? Get in touch | alex.turner-cohen@news.com.au
Earlier this year, Roxy’s Bootcamp was lavished with a fanfare of media attention when the trio launched the competition in March.
But just weeks later, the relationship between Ms Jacenko, and Mr Tleis and Mr Alaouie, appears to have soured drastically.
Last month, Ms Jacenko sensationally quit her namesake business and posted an apologetic video about it online.
“I’m sorry,” Ms Jacenko said on Instagram. “I am exhausted … and I’m embarrassed.
“I’ve done everything that I can and I will leave it now”.
In the eight minute video, Ms Jacenko, 43, repeatedly remarked on her weight as being impacted by stress from the “Roxy’s Bootcamp” promotion.
Mr Jacenko resigned as a director last month. At time of writing, Mr Tleis is the sole director of Roxy’s Bootcamp Pty Ltd.
Mr Tleis told news.com.au on Friday “There’s been a relationship breakdown and everyone is pointing the finger”.
He added: “The customers shouldn’t be impacted by a shareholder dispute”.
As a result, Mr Tleis has been battling the winding up orders and says he has filed a cross-claim as he wants the business to continue so it can fulfil its promises for the $10 million promotion.
“On behalf of Kas (Kassim Alaouie) and I, we do apologise for the way this turned out. It was no intention of ours,” Mr Tleis said. “It’s been a nightmare. Really really difficult.”
He said he had incurred “significant legal costs”, in excess of six figures, due to the feud.
“We regret partnering with Ms Jacenko,” he added.
“I’m giving away a $10 million home,” Ms Jacenko told Kyle and Jackie O on the Kiss breakfast show in March when she launched the promotion.
“If I can give someone the opportunity to either live in the house, rent it out or sell it, I’ve given them a chance to be a multi-millionaire,” she said to Channel 7 that same month.
One month’s access to the Roxy’s Bootcamp’s ebusiness seminars was sold for $29 and gave one competition entry while a $499 subscription would bring 500 entries.
It also emerged that the Cronulla house didn’t belong to Ms Jacenko. Instead it is owned by Youssef Tleis and his associate Kassim Alaouie. The Sunday Telegraph reported it was bought in 2020 for $3.4 million after it failed to sell at auction.
Listed again late last year, but this time for $10m, it also didn’t sell.
alex.turner-cohen@news.com.au
Originally published as Roxy’s Bootcamp goes into provisional liquidation, $10m house giveaway deadline falls apart
Company with just $3 in the bank collapses
One company had just $3 left in its bank account when it went under, while a business providing services was forced to sack staff after its bill went unpaid.
Shock in $561 million ‘Ponzi scheme’ collapse
A real estate agent has to personally pay back $7.4 million after encouraging a Sydney family’s involvement in a dodgy property investment opportunity.