This famous fitness company now files for bankruptcy after fading demand and shifts in consumer behavior, sources report.
The at-home fitness company BowFlex filed for Chapter 11 bankruptcy protection, on Tuesday.
BowFlex has identified a bidder in Johnson Health Tech Retail, Inc., which will acquire “substantially all of the assets” of the company for $37.5 million in cash.
The company has also secured a bankruptcy loan of $25 million, consisting of a $9 million revolving credit commitment and $16 million term loan reflecting the roll-up of BowFlex’s pre-filing term loan, reports Retail Dive.
Founded in 1986 with a single strength training machine, BowFlex grew to be “a global leader in innovative home and connected fitness solutions,” selling through both its own channels as well as through wholesale partners.
Aside from its namesake brand, the company’s entities included Schwinn, JRNY and Nautilus.
However, the company faced challenges in recent years, including fading demand after the pandemic, shifts in consumer behavior, macro-economic trends, interest rate pressures and “retailer over-inventorying,” CFO Aina Konold said in court documents.
In the summer of 2021, the company began to explore strategic partnerships and sought out additional capital, but that process failed to result in an out-of-court transaction, Konold said.
As part of its strategic realignment, the company in November 2023 changed its name from Nautilus, Inc. to BowFlex Inc after it sold off the Nautilus brand trademark assets and related licenses.
The company at the end of last year sought out an in-court sale of its assets, which successfully resulted in a stalking horse bid from Johnson Health Tech Retail.
BowFlex employs about 330 individuals in the U.S. and 70 internationally.
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Also Read: A Massive Retailer Now Closes And Begins Liquidation Sale
Other Economy News Today
A US company now files an unexpected liquidation bankruptcy after it accumulated too much debt to handle, sources report.
TBL Logistics, a Virginia-based national freight company, filed for Chapter 7 bankruptcy on February 29 in the U.S. Bankruptcy Court for the Western District of Virginia.
“In its filing, TBL Logistics listed its assets and liabilities as between $1 million and $10 million.
The company stated that it has up to 49 creditors and maintains that no funds will be available for unsecured creditors once it pays administrative fees,” Freightwaves reported.
The company’s owners, Christopher and Melinda Bradner, did not respond to the website’s request for comment, reports TheStreet.
Before it closed, TBL Logistics specialized in refrigerated and oversized loads.
The company described its business on its website as follows:
“TBL Logistics is a non-asset-based third-party logistics freight broker company providing reliable and efficient transportation solutions, management, and storage for businesses of all sizes.
With our extensive network of carriers and industry expertise, we streamline the shipping process, ensuring your goods reach their destination safely and on time.”
The truck-driver shortage is not just a U.S. problem; it’s a global issue, according to IRU.org.
“IRU’s 2023 driver shortage report has found that over three million truck driver jobs are unfilled, or 7% of total positions, in 36 countries studied,” the global transportation trade association reported.
“With the huge gap between young and old drivers growing, it will get much worse over the next five years without significant action.”
Not every bankruptcy filing explains why a company has gone out of business.
In the trucking industry, multiple recent Chapter 7 bankruptcies have also been tied to lawsuits that pushed otherwise successful companies into insolvency.
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Also Read: Beloved Retailer With 850 Stores Will Now File Bankruptcy
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