Uber Ordered to Pay $8.5 Million in Bellwether Sexual Assault Lawsuit 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
SpaceX Prioritizes Moon Mission Before Mars as Starship Development Accelerates 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Prudential Financial Reports Higher Q4 Profit on Strong Underwriting and Investment Gains 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
TrumpRx Website Launches to Offer Discounted Prescription Drugs for Cash-Paying Americans 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
BowFlex Inc. confirmed on Tuesday, March 5, that it filed for Chapter 11 bankruptcy protection at a court in New Jersey. The company revealed it is selling its assets worth $37.5 million and struck a buyout agreement with Johnson Health Tech Retail Inc. for the acquisition.
BowFlex said the fitness and wellness brand agreed to buy its assets in cash. The company shared it was also able to secure $25 million in debtor-in-possession financing so it can continue to operate while paying for its financial obligations as it undergoes bankruptcy proceedings and sale.
Decline of the Business
Axios reported that BowFlex’s business collapsed as Americans started losing interest in cardio equipment. This resulted in a slowdown in sales, but expenses are going up.
Most people changed their lifestyles during the pandemic and have shifted to new workout routines. As a result, the home fitness industry is experiencing slumping sales as its equipment is no longer popular. This explains why many firms in the industry, like Peloton, are also struggling and fighting to avoid bankruptcy.
Approval for Chapter 11
BowFlex is seeking the approval of the proposed transaction under Section 363 of Chapter 11 in the U.S. Bankruptcy Code as the last resort to save the business. The approval will allow external interested parties to bid and forward higher or better offers. It should be noted that the transaction is still subject to approval by the Bankruptcy Court, customary conditions, and others that may be required by law.
“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,” BowFlex’s chief executive officer, Jim Barr, said in a press release. “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.”
The CEO said, “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. Our goal is to maximize value for our stakeholders through this process.”
Photo by: Jelmer Assink/Unsplash
