Home fitness brands have been on a roll for the past few years. Peloton gained attention during the darkest days of the coronavirus pandemic as people opted to train at home while gyms were closed or severely limited.
Although it felt like a new trend, home workouts have actually been out of fashion since the 1970s. People bought stationary bikes and other home gym equipment in hopes of losing weight and getting a better figure without going to the gym because it seemed like an easy answer to a difficult problem. .
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But when people literally couldn’t go to the gym, Peloton (Pton) Other companies also experienced explosive sales growth. People want to stay in shape even when they can’t go to the gym, and many Americans have extra money on hand because they can’t travel, eat out, or do things they usually spend money on. Ta.
Additionally, home exercise equipment, especially the Peloton bike, has become something of a status symbol. It was a trend to be part of that community, and people wanted to be part of that trend, whether they used the community or not.
Lost in the at-home exercise resurgence is the company that arguably started the trend, Bowflex, formerly known as Nautilus. The company, which operated retail stores in the 1990s, has been left behind and its survival is now in serious doubt.
Peloton has become a leader in the stay-at-home movement.
Image Source & Colon Peloton & Period
BowFlex is in danger of bankruptcy and/or liquidation
Before there was Peloton, there was a company called BowFlex that made home exercise equipment like bikes and strength training machines. The company’s website briefly explains its mission.
“We are BowFlex Inc., the world leader in smart, connected home fitness and more than 35 years of helping people strengthen their inner and outer strength. BowFlex, Schwinn and JRNY Brands , offers a wide range of stationary bikes and cardio equipment, providing thousands of people around the world with the strength training products they need to inspire the joy of physical movement every day,” the company shared. did.
There was a time when the BowFlex brand was widely known, but in recent years the company has been in financial trouble and has issued a “going concern” warning.
“As a result of the continuing challenging retail operating environment, deteriorating macroeconomic conditions and reduced customer demand, the Company has experienced significant year-on-year declines in sales for the three and nine months ended December 31, 2023, in the coming quarters. “We currently believe the situation will not improve, which has a negative impact on our liquidity outlook,” the company said in an SEC filing.
Bowflex added that it is working to obtain new working capital or sell the company, which “could include filing voluntarily under federal bankruptcy law. If we are unable to close the transaction quickly or We do not intend to discontinue trading if we are unable to access liquidity sources.” We may be unable to maintain compliance with the debt covenants under our credit facilities and may be unable to continue our business. ”
“Under these circumstances, there is considerable doubt as to whether the company will be able to continue as a going concern for 12 months from the date of this report,” company management said.
Bowflex faces a dire situation
Ragini Bhalla, head of brand at Creditsafe, paints a bleak picture of BowFlex’s future.
“According to the company’s earnings report, net sales for the second quarter of 2024 were $90.4 million compared to $120.3 million a year ago, a decrease of 24.8%, driven by lower customer demand. “The situation was not much better in Q3 2024. The company reported revenue of $67.57 million compared to $98.08 million a year ago,” she wrote in an email to The Street. He spoke at
Barra believes the company faces significant challenges to its survival.
“Bowflex may continue to face challenges in generating revenue growth unless it addresses the drivers of sales declines, including adjusting its product offering and marketing strategy and addressing competitive pressures,” it added.
But Bhalla believes BowFlex is not without hope.
“In summary, BowFlex faces significant challenges in its financial performance, including declining sales and profitability. By doing so, the company will be able to improve its financial position and improve its position. “This is a long-term success,” she said.
