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Government to pay wages to Embody gym’s staff as report says founder Scott Capelin seen removing centre’s equipment

Government to pay wages to Embody gym’s staff as report says founder Scott Capelin seen removing centre’s equipment
March 25, 2019

A $40,000 bill for unpaid wages to staff who lost their jobs with the closure of Sydney’s Embody fitness centre will be paid by the Federal Government’s Fair Entitlements Guarantee.

The employees were among over 50 creditors - including personal trainers, members, investors and the Australian Taxation Office - who are owed $3.8 million after the failure of the Neutral Bay gym late last year.

Meanwhile, Sydney newspaper The Daily Telegraph has reported that Embody founder Scott Capelin has been captured on film at night removing equipment from the facility eight months after he handed control of the lease and its equipment to friend and business coach Matt Malouf.

The Daily Telegraph has published pictures that it says “appear to show baldheaded Capelin carrying gear from the rear of the closed gym and putting it into a white truck last month".

Capelin has reportedly also called on the gym’s original creator, British interior designer Anne McKevitt, to try and persuade the creditors to re-open the business.

McKevitt reportedly told creditors Capelin wanted to rescue the gym and was prepared to step away from the Neutral Bay studio if he could continue to work on the proposed Embody gym in Amsterdam.

The Daily Telegraph reported that a creditor who claims to be owed $500,000 from the failed business, told her “we would not do anything that would put money into Scott Capelin’s pocket.”

Explaining the payment of $40,000 owed to former Embody staff, liquidator Guy Baxendale advised “they will be paid under the Fair Entitlements Guarantee which is a (Federal) Government safety net of last resort.”

Baxendale is watching closely to see if Capelin does manage to re-open the gym.

In addition, NSW Police are investigating whether money from Neutral Bay was used to fund part of Capelin’s plans to open a gym in the Netherlands city of Amsterdam deal after creditors handed over invoices totalling almost $80,000.

Capelin’s alleged use of money from the fitness studio’s bank account to pay for loans made to another of his companies have also been referred to corporate regulator the Australian Securities and Investments Commission (ASIC).

Click here for more information on the Federal Government's Fair Entitlements Guarantee.

Images reported to show the recent removal of equipment from the Embody gym. Scott Capelin is reported to be the bald headed man on the right of the upper image, taken on the evening of 27th February. Pictures: Supplied.

Related Articles

24th January 2019 - Embody gym liquidation sees creditors lose $3.8 million

26th December 2018 - NSW Government Minister warns consumers over getting ‘ripped off’ by gyms

16th November 2018 - Fitness Australia releases first-ever National Fitness Industry Code of Practice

28th May 2018 - Embody offers therapeutic approach to fitness

2nd February 2018 - NSW Fair Trading advises consumers to only sign up with Fitness Australia affiliated gyms

22nd September 2016 - Snap Fitness threatens legal action over reporting of Futsalroo sacking

23rd August 2016 - New holistic wellness studio opens in Sydney’s Neutral Bay

12th March 2016 - Leading personal trainer sick of ‘fakes’ and ‘cash-grabbers’

4th July 2014 - ACCC warns gyms about ‘No Contracts’ membership advertising

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