American Home Fitness Files for Bankruptcy, Citing Post-Pandemic Market
At-home fitness companies have struggled after COVID, especially those selling equipment. BowFlex notably filed for bankruptcy last month
American Home Fitness has become the latest victim of the post-pandemic at-home fitness slump, with the privately held fitness retail company filing for Chapter 11 bankruptcy in a consolidation effort.
It’s become a familiar scenario for troubled fitness companies, as seen with equipment giant BowFlex, which declared bankruptcy last month.
The Michigan-based American Home Fitness sells well-known equipment brands such as Echelon, Inspire, Precor, Power Plate, StairMaster, Octane and Hyperice online and in its brick-and-mortar retail locations in its home state and Ohio.
The April 2 filing, entered into the U.S. Bankruptcy Court of the Eastern District of Michigan, estimates assets between $1 million and $10 million and estimates liabilities between $100,001 and $500,000. Several creditors were also listed, including Chase Ink Business with an unsecured claim of $57,983.
Charles Bullock, an attorney representing American Home Fitness in the legal process, told Crain’s Detroit Business that the company was a strong performer in the at-home fitness space before the market changed in recent years.
“In fact, during COVID, it had very strong years,” he told the publication. “Post-COVID, there’s been a real decline in at-home exercise. Foot traffic is down significantly at their stores, and they still have leases that they have to pay on.”
“It’s a story that you’re going to see I think a number of times going forward,” Bullock predicted to Crain’s. “These retail operations that were incredibly stable … post-COVID, the paradigm has changed, and they need bankruptcy assistance to restructure.”
At-Home Fitness Giants Struggle
Peloton, much like BowFlex and American Home Fitness, has continued to face challenges in a post-pandemic landscape that has seen consumers return to in-person fitness experiences in larger numbers than many predicted.
Peloton experienced record highs in May 2020 due to pandemic-related fitness purchases and closed out the year at $152/share. Fast forward four years, and the connected fitness company is priced at under $4 a share and is still struggling to return to its glory days despite undergoing a rebrand and putting more focus on its workout content over bike sales.
Like Peloton, BowFlex underwent a splashy makeover last year, dropping its Nautilus name in favor of its most popular equipment brand. However, BowFlex filed for Chapter 11 last month, agreeing to a deal that could see Johnson Health Tech Retail, parent company of Matrix Fitness, acquire it for $37.5 million.
