A beloved fitness brand is now at high risk of bankruptcy due to deteriorating macroeconomic conditions, and decline in customer demand.
The iconic and beloved fitness brand BowFlex has raised major questions about its survival, reports TheStreet.
“We’re BowFlex Inc. a global leader in smart and connected home fitness with 35+ years of helping people build inner and outer strength.
Through our BowFlex, Schwinn, and JRNY brands, we offer the wide range of exercise bikes, cardio equipment, and strength training products needed to fuel the joy of movement in thousands of people around the world every day,” the company shared.
There was a time when the BowFlex brand was widely known, but the company’s fortunes have suffered in recent years and it has issued a “going concern” warning, says the outlet.
“As a result of the continued challenging retail operating environment, deteriorating macroeconomic conditions, and decline in customer demand, we experienced a significant year-over-year decline in our revenue for the three and nine months ended December 31, 2023,” the company said in a Securities and Exchange Commission filing.
“Additionally, we now believe that conditions will not improve in the next several quarters, which is negatively affecting our liquidity projections.”
BowFlex added that it has been working to access new working capital or to sell the company, “which may include making a voluntary filing under federal bankruptcy laws.”
“If we are not able to promptly consummate a transaction or access additional sources of liquidity, we will not be able to maintain compliance with debt covenants in our credit facilities and may not be able to continue to operate our business.”
The company’s management also said that “under these circumstances, there is substantial doubt about our ability to continue as a going concern for twelve months from the issuance date of this report.”
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Also Read: A Famous Restaurant Chain Now Closes 4 Locations in Florida
Other Economy News Today
Unexpected school layoffs have now been confirmed in California with some employees seeing less hours or lower pay, sources report.
After declining to tentatively lay off employees in January, the Moreno Valley school board has agreed to cut the equivalent of about 70 positions, reports Sarah Hofmann with The Press Enterprise.
Though it’s routine for districts to approve possible layoffs before California’s March 15 deadline to notify affected employees and to later rescind some, the Moreno Valley Unified School District is also trying to cut costs after declaring that it’s facing “undue financial hardship” at a special meeting last month.
That resolution cites a projected 2023-24 general fund deficit of about $2 million, and the need to pay legal fees and settlements, including $121.5 million awarded to two former students who were molested by a teacher in the 1990s.
District spokesperson Anahi Velasco said in October that the insurance policy the district had at the time will cover about 11% of it, leaving the district to pay about $108 million.
Weeks before, the district also agreed to a $27 million settlement for the 2019 death of Landmark Middle School student Diego Stolz, 13, who was beaten by two school bullies and died of his injuries nine days later, TPE reports.
In January, employees and board members took issue with the 80 positions originally selected by administrators to be potentially cut.
Board members asked officials to look for other ways to cut spending, and to consider reducing more district office positions in order to keep more employees who work at schools.
“This is sad, but we have to make a decision tonight,” Vice President of the board Ruth Self-Williams, said Tuesday, Feb. 13.
The outcome, Riverside County Office of Education Chief Business Official Scott Price told the board, is that if the district “gets to a point where you’re going to run out of cash,” it would begin the process of getting a state loan, which he described as a “board takeover” in which an appointed administrator would oversee the district.
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Also Read: This Massive Mall Retailer Is Now Closing In California
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