TRX Up for Sale, Voluntarily Files for Chapter 11 Protection
The functional training product provider is undergoing a ‘comprehensive financial restructuring’ & is looking for a buyer
TRX, a provider of functional training products, is up for sale and has voluntarily filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Central District of California, Santa Ana Division. TRX, which was founded in 2004, stated that this will allow the company to significantly reduce its debt and ‘adjust to post-pandemic consumer demands.’
While TRX looks for a sale, the California-based company will continue to operate as usual and says it will honor its obligations to employees, customers, vendors, and partners.
The fitness brand acknowledges a record-breaking 2020 year due to an increase in demand for home fitness, but has since seen a cooling. TRX cites increased competition and macroeconomic challenges as reasons for seeking a strategic partner. TRX plans to move through the process quickly and efficiently, resulting in a new partner, strong operations, and a healthy balance sheet, according to a press release.
TRX added that its been focusing on enhancing its eCommerce platform, onboarding experienced management over the past year.
The unfortunate news follows warnings from the IHRSA, which released a bleak report on the state of the fitness industry in January.
Despite its challenges, TRX offers a sound fitness product. NFL players and former MMA fighter Razor Rob McCullough are fans of TRX’s flagship fitness system, the Suspension Trainer. The training system, designed by a former Navy SEAL, quickly amassed a celebrity following.
In order to meet virtual training demands, TRX Training Club was launched last year as a digital subscription-based platform with daily live fitness classes and on-demand workouts.
In an effort to reach new audiences, Zara and TRX Training Club collaborated late last year, bringing the TRX Suspension Trainer to Zara’s website and certain Zara stores. The partnership included exclusive fitness content.
TRX says the sale will take place in an open, court-supervised process and anticipates that the deadline for submitting qualified binding bids will be set at a later date.
