Johnson Health Tech Acquires BowFlex’s Assets for $37.5 Million Amid Post-Pandemic Economic Struggles

BowFlex declares bankruptcy | CNN Business

Johnson Health Tech, a Taiwan-based fitness equipment manufacturer, has recently acquired a majority of BowFlex’s assets for $37.5 million in cash. This comes after BowFlex filed for bankruptcy due to financial struggles in the post-pandemic environment and macroeconomic headwinds.

To continue operating, BowFlex has secured a $25 million debtor-in-possession financing. Despite this, shares of BowFlex have fallen by 5% in premarket trading due to the bankruptcy announcement. Johnson Health Tech is well established in the fitness equipment industry, with almost 500 global stores under its name and various brand names like Matrix, Horizon Fitness, and Vision Fitness.

BowFlex offers a range of exercise products, including treadmills, ellipticals, and its signature home-gym system. However, despite efforts to rebrand itself as a company synonymous with home fitness, BowFlex has struggled to keep up with shifting consumer trends. This struggle is reflected in the company’s decision to file for bankruptcy.

The challenges faced by BowFlex are not unique, as other companies in the home-based fitness equipment industry have also experienced difficulties. For example, Peloton and iFit have both faced setbacks in recent months due to changing consumer preferences and market conditions.

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