Creditors owed $4 million after Embody boutique gym failure
Employees and creditors caught up in the failure of the boutique Embody fitness and wellness studio at Neutral Bay are owed almost $4 million by the business.
NSW
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Employees and creditors caught up in the failure of the Embody fitness and wellness studio at Neutral Bay are owed almost $4 million by the business.
According to official documents filed by the director Scott Capelin on December 11, the business –trading under the name Caprahme Pty Ltd – has just $210,531 in assets and $3.8 million in debts.
Of these assets, only $10,231 have an estimated realisable value – meaning the other $200,300 in assets are totally worthless.
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According to the summary of affairs provided to the liquidator Guy Baxendale by Mr Capelin, there are 14 employees owed a total of $118,110.
There are also nine unsecured creditors, which the company owes $3,679,750, bringing the grand total owed to a whopping $3,797,860.
The summary of affairs does not appear to include investors who poured their own money into the business – including Tim Cox, who lost $500,000.
Creditors are meeting at Mr Baxendale’s office in Parramatta later this afternoon to discuss the liquidation process and next steps.
A protest had been planned to coincide with the gym’s reopening yesterday but was cancelled at the last minute after a former trainer told investors that the studio would remain closed, citing “too much heat” surrounding the fraud allegations and media attention.
A police investigation is currently underway into the activities of Mr Capelin, 42, following claims that he defrauded investors in his Embody fitness and wellness studio in Neutral Bay.
Investors have accused Mr Capelin of pocketing their money before closing down the original business, attempting to re-open at the same premises three weeks later under the same name.
Investors said that this has left many of them buried in hundreds of thousands of dollars of debt.
Originally published as Creditors owed $4 million after Embody boutique gym failure
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