According to a recent Market Watch report, home exercise company BowFlex has filed for bankruptcy.
BowFlex Inc. said Tuesday it has filed for Chapter 11 bankruptcy with a New Jersey court, after the home-exercise equipment company saw sales slump in the post-pandemic world.
The Vancouver, Washington-based company’s move was expected, after it said there was “substantial doubt” it could continue as a going concern in its latest earnings release, when it posted a loss and sales that were well below the year-earlier period.
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“As a result of the continued challenging retail operating environment, deteriorating macroeconomic conditions, and decline in customer demand, we experienced a significant year over year decline in our revenue for the three and nine months ended December 31, 2023,” the company BFX said in its 10-Q filing with the Securities and Exchange Commission.
“Additionally, we now believe that conditions will not improve in the next several quarters, which is negatively affecting our liquidity projections,” it added, as it warned it may be forced into bankruptcy.
On Tuesday, BowFlex said it had entered a so-called “stalking horse” asset purchase agreement and received a debtor-in-possession, or DIP, loan from creditors. DIP loans allow companies to continue to pay staff and vendors while they go through bankruptcy.
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