BowFlex Sold to Matrix Parent in $37.5M Deal
The once-high-flying home fitness equipment brand filed for bankruptcy last month amid post-pandemic challenges
At-home fitness equipment manufacturer BowFlex, which filed for bankruptcy in March amid the post-pandemic return to in-person fitness, has received an order approving the sale of its assets pursuant to the terms of a stalking horse agreement with Johnson Health Tech Retail, parent company of Matrix Fitness.
BowFlex and Johnson Health Tech inked the deal in early March, determining that the latter would take ownership of all BowFlex company assets at the close of the transaction should no other competitor surpass their agreed-upon $37.5 million price. With no other brand topping the offer, the U.S. Bankruptcy Court for the District of New Jersey approved the sale this week.
“We are pleased that the Court has approved this transaction with Johnson Health Tech,” said Jim Barr, BowFlex CEO. “Johnson Health Tech is among the world’s largest and fastest-growing fitness equipment manufacturers and home to some of the most respected brands in the fitness industry, making them the right organization to lead BowFlex into its next chapter.”
The transaction is subject to customary closing conditions and is expected to close on or around April 22, 2024.
The sale presents BowFlex with a much-needed fresh start. The brand had been struggling for some time, experiencing mass layoffs over a year ago, followed by a complete company rebrand before eventually delisting from the New York Stock Exchange over low market cap.
BowFlex isn’t the only at-home fitness equipment brand feeling the effects of the post-pandemic environment right now. Peloton has notably struggled to keep up its pandemic pace, while American Home Fitness, a Michigan-based home fitness equipment seller, filed for bankruptcy earlier this month, also naming the post-pandemic environment as the culprit behind its demise.
The Taiwan-based Johnson Health Tech already operates as the parent company of successful fitness supplier Matrix. Matrix recently made waves at IHRSA 2024 and FIBO 2024 with the launch of its Onyx Collection, a line of cutting-edge cardio machines that create an immersive workout experience with a captivating aesthetic.