VANCOUVER, Wash. — Vancouver home fitness company Bowflex filed for bankruptcy and plans to sell its assets for $37.5 million in cash, the company (NYSE: BFX) announced Tuesday.
The company, known as Nautilus until 2023, entered a purchase agreement with Johnson Health Tech, a Taiwanese company that owns several health brands. For the transaction Bowflex is entering Chapter 11 bankruptcy to "provide interested parties the opportunity to submit competing offers," according to the announcement.
Bowflex will lay off 202 workers in Clark County starting April 19, according to a filing with Washington's worker adjustment and retraining program.
Bowflex also secured $25 million in financing to continue operations and meet financial obligations, it said.
Bowflex signaled its plans last month in a filing in which it said it was considering a sale or bankruptcy after it revealed "substantial doubt" about its future.
“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,” CEO Jim Barr said in the announcement. “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. Our goal is to maximize value for our stakeholders through this process.”
The sale is not surprising news to those following the company's rise and fall since 2020. Bowflex was one of the of region's hottest companies when Covid-19 shut down gyms and people embraced home workouts. But the brand fell hard as the pandemic receded and it scrambled to keep operating.
Check out the full story at Portland Business Journal.
