Boss of Embody gym that owes creditors $3.8m, opens new fitness studio in wife’s name

The former site of up-market fitness studio Embody in Neutral Bay was vandalised over the weekend. The owner of the gym, Scott Capelin, went bust owing investors and trainers almost $4 million but has since opened up a new fitness studio in Sydney’s west, using the equipment from the old premises.

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Luxury up-market fitness studio Embody in Neutral Bay was vandalised over the weekend just as its former owner Scott Capelin opened a new gym in Sydney’s south.

The gym has stood empty since Capelin sacked instructors and liquidated the holding company, leaving investors and creditors $3.8 million out of pocket.

Sandstone tiles on the front of the gym were ripped off and left in broken pieces on the sidewalk while the door was forced open. Nothing was taken from inside.

Scott Capelin, who owned Embody gym, has opened a new fitness studio in Sydney. Picture John Grainger

Building manager Helen Mu said: “I don’t know who did it or why. I think a lot of people don’t like Scott Capelin and I think that might be why this happened.”

Ms Mu said Capelin remained responsible for the gym until it could be put up for lease again “once the lawyers have sorted everything out”.

Tiles at the old Embody gym in Neutral Bay were ripped off.

The vacant Embody gym in Neutral Bay was vandalised.

Liquidator Guy Baxendale said investors in Capelin’s company had spent $2 million fitting out the swanky premises and had tried to get some return on their investment.

“We spent a lot of money on the fit-out and we want to claim that back,” he said.

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Instead he had been locked out of the building.

“We would have liked to lease it out to someone else but there was nothing in writing,” he said.

Capelin is now promoting inLIFE Wellness, which is registered in his wife Lauren’s name, and boasts on his website of his prowess at business — without mentioning that his last “fitness and wellness studio” went bust owing 54 creditors.

He opened inLIFE Wellness in Menai under his wife’s name. Picture John Grainger

“I would hate to see this all happen again to a new group of unsuspecting investors and staff members,” said Ellie Heasman, whose personal trainer husband Tim lost his job and the $150,000 inheritance he invested with Capelin’s business.

“Previously I had thought let’s just write off the $150,000 we invested as a hard lesson and move on, but I'm now disgusted that he's apparently so fine after all of this that he can afford to just open another gym.”

Photographs of Capelin instructing gym members appear on the web page of inLIFE Wellness at Menai. Logos from the new gym have been stuck on top of the old Embody logos on the equipment.

Mr Capelin was forced to close his gym after owning investors and trainers almost $4 million. Picture: Supplied

He was spotted removing gym equipment from Embody on February 27. Picture: Supplied

On his inLIFE Coaching page Capelin boasts: “In the past 12 years, I’ve started, built and sold twelve successful businesses. I guess you could say I know a thing or two about pushing myself to achieve what I want in life, personally and professionally.”

But he does not mention the collapse of Embody nor the Amsterdam hotel which pulled out of a plan to launch the brand in Europe after it learned about the collapse of the business in January.

Liquidator Guy Baxendale is still trying to track down the money owed to creditors and will this week ask for support from the Federal Attorney-General to investigate him.

Liquidator Guy Baxendale is still tracking down the money owed to creditors. Picture: Jonathan Ng

“I am seeking Federal Government funding from the Fair Entitlements Guarantee to investigate exactly what happened to gym and the activity of its directors,” he said.

Mr Baxendale said Capelin had broken no rules with inLIFE Wellness.

“The new gym is in the name of his wife Lauren. He is allowed to do what he likes.”

And he said Capelin registered ownership of the old Embody reformer gym equipment under another company, now in his wife’s name, and was legally entitled to have it.

The new gym’s website doesn’t mention the collapse of Embody. Picture: Instagram/ @embodyaustralia

However he still wants answers to what happened to the $3.8 million owed to investors, trainers and creditors when Embody collapsed in December.

“There was money going everywhere — I want to get this matter into court to examine these people,” he said.

Meanwhile other investors have been watching the sale of Capelin’s town house in Gymea Bay in Sydney’s south at the start of the month for $1.3 million.

“It would be nice if that money was used to pay back some of what is owed,” Ms Heasman said.

Capelin did not respond to The Daily Telegraph’s request for comment.

Originally published as Boss of Embody gym that owes creditors $3.8m, opens new fitness studio in wife’s name