AI Massage Company Aescape Goes Insolvent With $150M+ in Debt

The proceedings mark a significant reversal for Aescape, an AI-powered robotic massage company affiliated with Tom Brady and whose beds have been placed inside luxury gyms

The original Aescape corporate entity is winding down after substantially all of the company’s assets were sold earlier this year through a foreclosure process. However, Aescape’s new owners say the business will continue.

According to creditor documents, Aescape executed a General Assignment in favor of Insolvency Services Group, Inc. on April 3, 2026. The Assignment for the Benefit of Creditors (ABC) process serves as a state-law alternative to Chapter 7 bankruptcy and is commonly used in California to liquidate insolvent companies and administer creditor claims.

The filing outlines mounting financial pressure tied to the company’s transition from a development-stage startup into commercial operations, including high operating costs, capital expenditures and debt obligations.

Aescape, founded in 2017 by Eric Litman, created and distributed AI-powered robotic massage beds. The company had emerged as one of the more visible recovery-tech startups in the premium wellness market, securing placements within fitness operators including Equinox and luxury hotel destinations. Last year, the company acquired the exclusive rights to Tom Brady’s recovery and pliability protocols, and named Brady as its chief innovation officer.

Litman is no longer with the company, recently founding a new startup, Healthspanners.

According to the filing, Silicon Valley Bank issued a notice of default to Aescape in December 2025 tied to alleged defaults under the company’s secured loan agreement, which at the time carried a principal balance of at least $11.8 million. The filing states that Black Stag Lending later acquired the secured loan from SVB and entered into additional financing arrangements with Aescape, including a $5 million revolving note intended to support continued operations during a transitional period.

After the company failed to cure its defaults, Black Stag initiated an Article 9 foreclosure sale process. According to the filing, Aescape Recovery, Inc. submitted the only bid during the sale process on Jan. 30, 2026, offering a $16.625 million credit bid for substantially all company assets and collateral. The asset transfer became effective March 5, 2026.

“As a result of the foreclosure, Aescape was rendered an assetless shell,” the filing states.

The filing also details the scale of Aescape’s liabilities at the time of the assignment. According to the documents, the company still owed Black Stag approximately $4.55 million following the foreclosure process, in addition to approximately $152.6 million in unsecured debt.

Creditors were advised that because substantially all assets had already been foreclosed upon prior to the assignment, it is “unlikely” unsecured creditors will receive distributions unless additional assets are identified and monetized during the wind-down process.

The filing marks a significant reversal for a company that had been positioned as one of the more ambitious players in the emerging recovery-tech category. While the original Aescape entity is now being liquidated through the ABC process, the foreclosure sale leaves open the possibility that portions of the company’s technology, intellectual property or commercial operations could continue under new ownership.

While the original corporate entity is now being wound down through the ABC process, Aescape Recovery Inc. has emerged as the new operating company and owner of all assets, including the technology, intellectual property, hardware and partner network agreements.

“The business is under new, seasoned leadership, well-financed and continues to expand,” a company spokesperson wrote in a statement to Athletech News.

The company added that it has three “tier-one” private equity investors and remains “the leading brand in personalized recovery.”

Aescape Recovery also said that April was its best sales month in company history. The company says it now has more than 130 deployments across the country, is on track for more than 200 by year-end and delivers over 12,000 personalized bodywork sessions per month at a 95% satisfaction rate.

Although it’s unclear what the future holds for Aescape beds inside operators like Equinox, Life Time and others, Aescape Recovery said it continues to work with “world-class partners across leading fitness, hospitality and wellness environments.”

Update: This story has been updated from an earlier version to include information about Aescape Recovery Inc., the new operating company and owner of all Aescape assets.