Clmbr Explores ‘Strategic’ Deal After Layoffs, LA Studio Closure
The LeBron James and Jay-Z-backed vertical climbing machine maker laid off around 25% of its staff as the connected fitness industry struggles
Clmbr, the maker of the first-to-market connected vertical climber, has taken steps to restructure its business in anticipation of what it describes as a “strategic transaction” that’s expected to take place by the end of the year.
The “Peloton of climbing machines” has closed its Los Angeles-based fitness studio, although its Denver-based flagship studio and headquarters remain open. Clmbr had announced the opening of its L.A. studio just last fall.
Amid speculation from at least one former employee that the company was closing its doors, Avrum Elmakis, Clmbr’s founder, told Athletech News that that Clmbr isn’t considering filing for bankruptcy and will continue its manufacturing operations.
“We are a normal business in a very challenging time,” Elmakis told ATN.
Elmakis said the recent layoffs affected approximately 7-10 Clmbr employees, leaving around 30 still with the company. Additionally, all of Clmbr’s DTC and B2B operations are continuing with its distribution partners, including Woodway.
The fitness maker has attracted high-profile investors during the pandemic years, such as Jay-Z, LeBron James, Odell Beckham Jr., Novak Djokovic and Ryan Seacrest.
At the close of 2022, Clmbr announced it had secured additional funding in a Series B for the launch of its next-gen Clmbr 02 machine and said its 2023 market strategy would be supported with funding from a diversified group of institutional and strategic investors.
The funding was also intended to support Clmbr’s growth goals and market expansion.
While Clmbr disrupted the at-home fitness industry with its innovative climbing machine, it won’t be the first company to restructure in the face of a changing connected fitness landscape and challenging economy.
Peloton and Lululemon have both pushed away from fitness hardware in favor of a digital platform, with Lululemon still trying to offload its connected fitness mirror and recently laying off 100 Lululemon Studio employees. Peloton reduced the price of its signature Tread and rower after its rebrand and decision to rely on content over hardware. Tonal, on the other hand, recently named a new CEO and raised $130 million in an attempt to course correct.