Bowflex, the publicly traded fitness company, which rebranded itself from Nautilus, is facing liquidity issues that may lead to a bankruptcy filing or an outright sale of the Seattle-based business. In a public filing yesterday, the company cited both deteriorating macroeconomic concerns and a decline in customer demand, challenging its business to remain a going concern in 12 months. The group said it has been actively pursuing alternatives “to access liquidity or sell the company or its assets, which may include making a voluntary filing” under US bankruptcy laws. Five months ago, the New York Stock Exchange notified Bowflex that it did not comply with the continued listing standard.
At calendar year-end, the company had $15.9 million in cash, $31.9 million of working capital, and $24.4 million available under its credit facility.
For the three months ended Dec. 31, Bowflex suffered a net loss of $34.3 million and a 31 percent decline in total revenues to $67.6 million from $98.1 million. Direct sales fell by 17 percent to $38.6 million, and retail sales declined by 43 percent to $28.7 million. Q3 sales generated in the EMEA declined by 41 percent to $5.4 million but were up by 76 percent for the nine months at $14.1 million. The majority of Bowflex’s revenues are generated in its home market, down by nearly 29 percent for the three months at $53.9 million and for the nine months at $124.8 million.
