Vancouver-based fitness company, BowFlex, is running out of money and is doubtful that it will be able to stay in business, according to The Portland Business Journal. Keep reading below for more details.
Last week, BowFlex said in its regulatory filing that the company is facing a cash crisis, “adverse market conditions,” and operating losses. The company has also stated that it’s evaluating its assets and is expecting an impairment charge of approximately $21 million. BowFlex’s quarterly earnings report mentioned that the team has taken on an “increased workload.”
In the SEC filing from February 14, BowFlex said:
The company anticipates that the (quarterly report) will disclose that, unless it is able to promptly consummate a transaction or access additional sources of liquidity, there is substantial doubt about the company’s ability to continue as a going concern.
Along with so many other fitness equipment and connected fitness companies, BowFlex soared during the pandemic, when millions of Americans were working out from home because they could no longer workout in their gyms. According to Portland Business Journal, BowFlex was one of the fastest-growing companies in that particular region; however, things have taken a much rockier turn for the fitness company since 2020:
It has been at risk of losing its New York Stock Exchange listing twice in two months, and it lowered its annual outlook of $215 million to $240 million in November from a previous range of $270 million to $300 million.
Additionally, BowFlex saw a 25% dip in sales in its last quarterly earnings – filed on November 14 – citing customer demand as the reason for the dramatic drop in sales. As of this Tuesday, BowFlex’s shares dropped down from $.51 on February 15 to $.28.
BowFlex CEO, Jim Barr, said back in October that he was optimistic about BowFlex’s ability to weather the storm, noting the company’s brand recognition and the shifting fitness trends.
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