Former AFL player Josh Gibson reveals impact of BeFit gym fiasco
Former AFL premiership player Josh Gibson is one of several investors who believes he has been short-changed in a dispute over a boutique eastern suburbs gym. He reveals how his stake in the BeFit business was drastically reduced without his knowledge.
NSW
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Retired AFL superstar Josh Gibson said his stake in boutique fitness company BeFit was reduced by half without his knowledge.
The claim comes amid an ongoing dispute between the gym franchise’s investors over the financial state of the business.
Investors in the gym chain, with studios in Alexandria, Adelaide and Melbourne, have retained lawyers to find out where their money went while contractors are chasing thousands in outstanding bills from the Double Bay outlet.
One of the founding directors of BeFit, Rose Bay 34-year-old Ben Ezekiel, resigned from the post in May, while business partner Stelio Fardoulis is attempting to salvage the situation.
Former Hawthorn triple premiership player Mr Gibson, who opened a gym in Melbourne last November, bought into the business after training at a BeFit studio himself.
“It’s the most advanced training session I’ve seen out of playing professional sport,” the 36-year-old said.
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Mr Ezekiel, a professional punter turned business director who lives in the Eastern Suburbs with his wife and kids, and his former best mate, Mr Fardoulis, were the brains behind the BeFit brand.
They started it under BeFit Training and opened the flagship gym in Double Bay in 2016.
Mr Ezekiel created the spin off company, BeFit Technology, to handle franchises in 2018.
In early, 2019, Mr Gibson joined BeFit Tech as dual shareholder with Mr Ezekiel.
However, Mr Gibson said he was surprised to learn early this year that two Sydney-based investors were brought into the company, which he claims occurred without his knowledge.
That move drastically reduced his stake in the company by 50 per cent.
“These people were brought into BeFit Tech,” he said.
“That diluted my shares in the business and was done so without my approval.
“Even if I had agreed to the dilution, I should have been made aware of changes in the share agreement.”
Mr Gibson said the other investors were signed into the business late last year but claims he didn’t find out about it until February this year.
“I noticed changes to the ASIC shareholders agreement and people had been added and that prompted me to get up to Sydney to have a discussion with Ben Ezekiel about what was happening,” he said.
“We sat down with Ben and the other investors and I asked them to present the contract they signed to join the company.
“My name was on it and signature but I hadn’t signed it.”
Ben Woolford opened the first BeFit franchise in Adelaide in October, 2018, after meeting Mr Ezekiel in Sydney.
Overall, he has invested $250,000 into BeFit and said his initial 20 per cent stake in the business was diluted to 6 per cent last year without his knowledge.
Mr Woolford said he didn’t sign a share agreement authorising the changes.
It was revealed last week that Mr Fardoulis, a successful businessman in his own right, is also disputing a share transfer in 2019.
Mr Ezekiel has repeatedly been offered the opportunity to comment on the ongoing dispute.
Between October and February, about a million dollars was raised through investment and loans to grow BeFit, Mr Gibson said.
Accountants are now combing through bank transactions and accounts to figure out how that money was spent.
Meanwhile Mr Gibson and Mr Woolford have teamed up to relaunch BeFit under Revl with at least 80 people inquiring about franchises.
“With five booming locations and another two in Surry Hills and Brisbane opening in August our focus has been building Revl,” Mr Gibson said.