The Vancouver company known for making fitness machines most recently under the name BowFlex is declaring bankruptcy. In filings this week, BowFlex signaled it intends to lay off more than 200 employees, enter Chapter 11 bankruptcy reorganization and sell its assets to Johnson Health Tech Retail, according to a statement from the company.
BowFlex, which used the name Nautilus until it sold that brand name last year, has been a manufacturer of home fitness equipment dating back to the 1980s. But it has struggled financially in the last few years and announced this week is pursuing bankruptcy proceedings “to facilitate the sale process.”
In filings this week, BowFlex signaled it intends to lay off more than 200 employees, enter Chapter 11 bankruptcy reorganization and sell its assets, including the BowFlex headquarters shown above in Vancouver, Washington.
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“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,” Jim Barr, BowFlex Inc. chief executive officer, said in a statement posted to BowFlex’s website. “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.”
The buyer is referred to as a “stalking horse bidder” in official filings, meaning Johnson’s $37.5 million offer is an initial bid aimed at buying BowFlex during bankruptcy.
BowFlex noted in its Worker Adjustment and Retraining Notification Act letter, received by Washington’s Employment Services on March 4, that a different entity could emerge as the Vancouver company’s ultimate buyer, “but that will not be determined until on or about April 12, 2024.” The “targeted closing date” for BowFlex’s planned purchase is a week later, on April 19.
In a summary of the WARN notice sent to OPB by Washington ESD, BowFlex said it “will be laying off a portion of its workforce at its Vancouver, Washington, Headquarters located at 17750 SE 6th Way and Innovation Center located at 17711 SE 6th Way.”
The notice said 202 employees could be affected, representing a range of workers with 171 different job titles, according to a Washington ESD spokesperson. It’s possible that BowFlex’s buyer will retain or rehire some of the workers BowFlex plans to lay off.