Vancouver-based fitness equipment manufacturer BowFlex filed for bankruptcy, along with announcing hundreds of potential lay offs, the company said Tuesday.
Formerly known as Nautilus, BowFlex issued a state-mandated notification Tuesday that it could lay off 202 workers beginning in April.
“For decades, BowFlex has empowered healthier living and enabled consumers to reach their fitness goals with our innovative home fitness products and individualized connected fitness experiences,” CEO Jim Barr said in a statement Tuesday.
“As a result of the post-pandemic environment and persistent macroeconomic headwinds, we conducted a comprehensive strategic review and determined this was the best path forward for our company,” said Barr.
BowFlex executives are looking to sell the nearly 40-year-old company. They signed a purchase agreement to sell off substantially all of BowFlex’s assets with Johnson Health Tech Retail for $37.5 million, which will act as a “stalking horse bidder.” The finance term describes a bidder who will establish a low-end bidding bar so other bidders can’t underbid the purchase price for a bankrupt company.
“We are fortified by the potential partnership with Johnson Health Tech and encouraged by the multiple parties that have indicated an interest in bidding for our company,” Barr said.
In order to facilitate the sale, BowFlex also filed for voluntary Chapter 11 bankruptcy and secured $25 million in debtor-in-possession financing.
Ultimately the buyer will determine the number of layoffs at BowFlex.
Barr maintained the company’s goal with the process was to maximize value for stakeholders.
