BowFlex Inc., a leading home fitness company, has agreed to sell most of its assets to Johnson Health Tech Retail, Inc. for $37.5 million in cash, as part of its Chapter 11 bankruptcy process.
The company filed for bankruptcy protection in New Jersey on Saturday, citing the post-pandemic environment and persistent macroeconomic headwinds. It has secured a $25 million financing facility from SLR Credit Solutions to continue its operations and customer service during the bankruptcy proceedings.
The sale agreement with Johnson Health Tech, a global fitness equipment manufacturer and retailer, is subject to higher or better offers from other interested parties and approval by the bankruptcy court. BowFlex CEO Jim Barr said the potential partnership with Johnson Health Tech was a positive outcome of the company’s strategic review and would maximize value for its stakeholders.
BowFlex has been in the home fitness industry for decades, offering innovative products and connected fitness experiences to consumers. The company’s website and claims agent provide more information about the bankruptcy and sale process. Sidley Austin LLP and Holland & Hart LLP are the company’s legal advisors, while FTI Consulting, Inc. and FTI Capital Advisors LLC are its financial advisor and investment banker.
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