The former CEO of a thriving cosmetic clinic chain has launched Federal Court proceedings following his dismissal from the multi-million-dollar company, as details of a past business bankruptcy can be revealed.

Former Contour Clinics boss Mike Canizales is suing the company, having been appointed CEO in January 2024 on a salary of $350,000 before being sacked in August 2025.

Before joining the company, Mr Canizales ran a high-end spa business in the United States that later collapsed into bankruptcy.

Daily Mail can reveal his luxury chain, Spa Chakra, filed for Chapter 11 protection in 2009 before shutting its doors the following year, leaving a trail of financial turmoil.

The company which operated luxury spas in high-end hotels at around 15 premium locations before its abrupt downfall.

The revelation has emerged ahead of a bitter Federal Court fight between Canizales and Contour Clinics founder Dr Josh Wall, in a case set to air a series of disputed allegations.

In a 31-page statement of claim, Mr Canizales accuses Dr Wall of struggling with illicit drugs, gambling and embezzlement bu those claims that are strongly denied.

He alleges upon taking the CEO role, Dr Wall confided he had recently returned from rehab in Thailand following a battle with substance abuse.

Former Contour Clinics CEO Mike Canizales has launched the explosive court action

Dr Wall left the business he co-founded in November to focus on his ‘health and wellbeing’

Mr Canizales further claims he uncovered serious financial irregularities within the fast-growing cosmetic chain, including alleged embezzlement of up to $1million.

Dr Wall, while acknowledging past difficulties managing stress, rejects any suggestion of embezzlement or wrongdoing.

‘I have faced issues with stress in the past, which I haven’t always managed appropriately.’ he said in a statement. 

‘At no point, have I let these issues impact my care for patients, which has always been my absolute priority.’

The dispute escalated after an anonymous complaint about Dr Wall’s alleged drug use was lodged with the Health Care Complaints Commission in 2024, triggering mandatory testing.

Mr Canizales claims Dr Wall failed that test, but a letter from the Medical Council of NSW in February 2025 said it was satisfied Dr Wall had ceased cocaine use and was not ‘impaired’. 

He subsequently undertook further voluntary testing, which returned negative results.

‘I have also undertaken further testing, that I was not compelled to do so, and these voluntary tests were all negative,’ Dr Wall said.

Contour Clinics has grown into an eight-clinic chain offering non-surgical cosmetic procedures

Dr Josh Wall was cosmetic doctor and the medical director of Contour Clinics which he founded in 2017 with buiness partner Ben Thurlow

In June 2025, Contour Clinics engaged advisers to raise capital, and by the following month the company had been valued at about $160million.

Under an alleged agreement, Mr Canizales claims he stood to pocket $27.2million.

Instead, he was suspended and then sacked in August 2025 for alleged misconduct, with the company claiming he misled them about his resume and past business dealings, something he denies.

Mr Canizales maintains he only agreed to stay on to turn around the business if he was granted a share in any future ‘liquidity event’, such as a sale or capital raising.

Contour Clinics, was founded in 2017 by Dr Wall and Ben Thurlow, and has grown into an eight-clinic chain offering non-surgical cosmetic procedures popular with influencers and reality TV stars.

The court documents also reveal claims of internal turmoil, including alleged discrepancies in financial records and repeated cash flow errors up to $500,000.

Dr Wall left the business last November to focus on his health and wellbeing.

‘I made the difficult decision to step away from Contour Clinics to focus on my health and wellbeing,’ he said.

Contour Clinics posted a make up-free photo of Aussie influencer Mikaela Testa on Instagram before she underwent a rejuvenation and anti-wrinkle treatment

‘This followed an intense and stressful period for the business, including false allegations put forward by the former CEO in regards to my conduct.

‘In stepping away from the business, I am entirely focused on my own health and wellbeing and making a recovery as quickly as possible.’

Mr Canizales is no stranger to high-stakes legal fights.

He successfully sued Microsoft 30 years ago after losing out on share options tied to a role with ninemsn, and walked away with an estimated $14million payout.