BowFlex Files for Chapter 11 Bankruptcy, Enters Purchase Agreement with Johnson Health Tech

The fitness equipment maker, facing a sales slump post-pandemic, aims to sell its assets for $37.5 million amidst ongoing financial challenges.

BowFlex has filed for Chapter 11 bankruptcy due to declining sales in the post-pandemic environment and macroeconomic headwinds.
The company has entered into a $37.5 million purchase agreement with Taiwan-based Johnson Health Tech, but is open to higher bids.
BowFlex secured $25 million in debtor-in-possession financing to continue operations and pay employees during the bankruptcy process.
Shares of BowFlex have plummeted nearly 90% over the past year, reaching an all-time low last month.
The sale to Johnson Health Tech is part of a strategy to maximize value for stakeholders and ensure continued employment for its workforce.