New York
CNN
—
Peloton isn’t the one at-home train gear firm feeling the ache: BowFlex is simply too, saying Tuesday that it has filed for chapter.
The practically four-decade outdated firm, finest identified for commercials that have been a staple of late-night tv within the Nineteen Nineties, filed for Chapter 11 and mentioned Johnson Well being Tech, a Taiwan-based firm, would “purchase considerably all the property” for $37.5 million in money.
BowFlex blamed its chapter on the “post-pandemic setting and chronic macroeconomic headwinds” and mentioned it acquired curiosity from “a number of” corporations however selected Johnson Well being Tech as a result of it’ll “maximize worth for our stakeholders by this course of.”
A $25 million debtor-in-possession financing will enable BowFlex (BFX) to function usually and hold its workers paid. Shares of the penny inventory fell 5% in premarket buying and selling.
Johnson Well being Tech makes related train gear below the Matrix, Horizon Health and Imaginative and prescient Health manufacturers. It additionally has practically 500 international places of its retail retailer utilizing the Johnson identify.
Washington-based BowFlex makes a number of merchandise, together with treadmills, ellipticals and its well-known home-gym contraption that lets individuals do greater than 70 weight-based workouts. In November, dad or mum firm Nautilus rebranded itself with the BowFlex identify in hopes of attracting new customers to an identification “synonymous with dwelling health.”
Makers of home-based health gear have struggled following the pandemic, as People rushed again to the gymnasium; together with the increasing popularity of weight-loss drugs. Peloton mentioned final month that its turnaround plan isn’t going as deliberate and NordicTrack-owner iFit scrapped its plans to go public in 2022.