Fitness company BowFlex has filed for Chapter 11 bankruptcy as sales once driven by pandemic-related lockdown orders continue to slump.
The exercise equipment maker, known for its ubiquitous commercials, announced it also entered into a purchase agreement to sell itself for $37.5 million to Taiwan-based Johnson Health Tech, but left the door open for higher bids.
In February, the company warned investors there was “substantial doubt” it could stay in business.
BowFlex cited the “post-pandemic environment” for its bankruptcy, but said the sales agreement would ensure its employees keep getting paid as the process plays out. The new buyer will ultimately decide how many workers lose their jobs. The company laid off 15% of its workers last summer.
“For decades, BowFlex has empowered healthier living and enabled consumers to reach their fitness goals with our innovative home fitness products and individualized connected fitness experiences,” CEO Jim Barr said in a statement Tuesday.
“As a result of the post-pandemic environment and persistent macroeconomic headwinds, we conducted a comprehensive strategic review and determined this was the best path forward for our company,” said Barr. “We are fortified by the potential partnership with Johnson Health Tech and encouraged by the multiple parties that have indicated an interest in bidding for our company.”
Last year, the company sold the rights to the name Nautilus. In 2009, it sold the StairMaster brand to Core Health & Fitness, which owns brands like Schwinn and JRNY.
Peloton has similarly seen its sales and subscriptions slow in recent months as exercisers flock back to gyms for their workouts.
