Bowflex filed a chapter 11 petition in the New Jersey bankruptcy courts with a $25mn DIP loan from incumbent lender SLR Credit Solutions, which provided the company an initially $30mn loan in November 2022, according to SEC filings.
The borrower, which previously operated under the name Nautilus, won interim approval for use of the facility. The package comprises a $9mn revolving commitment and a $16mn rollup of prepetition debt. The proceeds from the revolving portion are to be used for working capital and GCP, and pays interest at S+825.
Planning to sell its assets in bankruptcy, Bowflex filed with a $37.5mn stalking horse bid from Johnson Health Tech Retail, which will serve as the opening offer in the Sector 363 sale conducted by the court.
A confluence of “persistent macroeconomic headwinds” and the “post-pandemic environment” caused the bankruptcy filing, Bowflex CEO Jim Barr said in a statement. The company had seen a decline in customer demand, according to its annual report.
Before initiating its chapter 11 case, the company undertook several initiatives. In the second quarter, it sold its Nautilus brand trademark assets and related licenses for $10.5mn and its Vi Labs equity investment for $2.3mn, according to its annual report. It also raised $4.6mn from a stock issuance to an unnamed institutional investor.
Vancouver, Wash.-based Bowflex provides digital fitness content, as well as at-home fitness equipment, including bicycles, ellipticals, weights and treadmills.
SLR Credit Solutions invests at least $20mn in US and Canadian companies with revenues of $50mn or more for refinancings, buyouts, growth or turnarounds.
Andrew Hedlund
LevFin Insights
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