BowFlex: $37.5M Sale to Johnson Health Tech
BowFlex Inc. filed for chapter 11 protection on March 4, 2024, in the U.S. Bankruptcy Court for the District of New Jersey. The company obtained $25 million in postpetition financing from Crystal Financial LLC d/b/a SLR Credit Solutions, ran a court-supervised auction, and sold substantially all operating assets to Johnson Health Tech Retail for $37.5 million. The court confirmed a chapter 11 plan of liquidation on August 19, 2024; the plan distributed non-transferable liquidating trust interests to general unsecured creditors and canceled equity on the effective date.
Sources (22)
- confirmedCourt filing (opens in a new tab)
- First Day DeclarationCourt filing (opens in a new tab)
- objectedCourt filing (opens in a new tab)
- DIP MotionCourt filing (opens in a new tab)
- Final DIP OrderCourt filing (opens in a new tab)
- Bidding Procedures OrderCourt filing (opens in a new tab)
- Sale OrderCourt filing (opens in a new tab)
- Second Modified PlanCourt filing (opens in a new tab)
- Effective Date NoticeCourt filing (opens in a new tab)
- filed for chapter 11 protectionbusinesswire.com (opens in a new tab)
- Johnson Health Tech Retail Finalizes Purchase of BowFlex (Johnson Health Tech, 2024-05)johnsonhealthtech.com · May 1, 2024 (opens in a new tab)
- NYSE ticker change from "NLS" to "BFX"businesswire.com (opens in a new tab)
- sold the Nautilus brand for $10.5 millionbusinesswire.com (opens in a new tab)
- BowFlex files for bankruptcy (CNN, 2024-03-05)cnn.com · March 5, 2024 (opens in a new tab)
- BowFlex files bankruptcy: Exercisers losing interest in cardio (Axios, 2024-03-05)axios.com · March 5, 2024 (opens in a new tab)
- BowFlex Files for Bankruptcy (Oregon Business, 2024-03)oregonbusiness.com · March 1, 2024 (opens in a new tab)
- BowFlex Future in 'Doubt' (Athletech News, 2024-02)athletechnews.com · February 1, 2024 (opens in a new tab)
- Vancouver-based BowFlex announces bankruptcy, likely layoffs (OPB, 2024-03-06)opb.org · March 6, 2024 (opens in a new tab)
- Vancouver-based fitness company Bowflex files for bankruptcy (KGW, 2024-03)kgw.com · March 1, 2024 (opens in a new tab)
- BowFlex filed for bankruptcy (Tom's Guide, 2024-03)tomsguide.com · March 1, 2024 (opens in a new tab)
- BowFlex Inc. Files for Chap 11 Bankruptcy, Appoints Stalking Horse Bidder (SGB Media, 2024-03)sgbonline.com · March 1, 2024 (opens in a new tab)
- broader brand familybusinesswire.com (opens in a new tab)
Case record
Case closed ·
- · BowFlex Quarterly Report
- · Objection to Dongguan Claim
- · Proof of Claim - Claim 30050 - Epiq Document 4620945
Next hearing: · General / Status
Public case facts. Searchable documents available. Full docket access requires Pro.
| Debtor(s) | BowFlex Inc. (and affiliated debtors, jointly administered) |
| Court | U.S. Bankruptcy Court, District of New Jersey |
| Case Number | 24-12364 |
| Judge | Hon. Andrew B. Altenburg Jr. |
| Petition Date | March 4, 2024 |
| DIP Facility | $25 million total: up to $9 million new-money revolving DIP loans + a $16 million roll-up into a DIP term loan (DIP lender: Crystal Financial LLC d/b/a SLR Credit Solutions) |
| Restructuring Path | Section 363 sale to a strategic buyer, then a chapter 11 plan of liquidation implemented through a liquidating trust |
| Sale | Substantially all assets sold to Johnson Health Tech Retail for $37.5 million cash at closing (sale closed April 22, 2024) |
| Plan Confirmation / Effective Date | Plan confirmed August 19, 2024; effective date occurred August 23, 2024 |
| Claims Agent | Epiq Corporate Restructuring, LLC |
Ask our AI chat to review the BowFlex docket, including the key filings, orders, and deadlines behind this case.
From Nautilus Rebrand to Post-Pandemic Distress
Business model. BowFlex marketed, developed, and manufactured home-fitness products under the BowFlex, Schwinn, and JRNY brands, with manufacturing primarily outsourced to third-party manufacturers in Asia.
Prepetition rebrand. Nautilus, Inc. became BowFlex Inc. effective November 1, 2023, including a NYSE ticker change from "NLS" to "BFX". In May 2023, the company sold the Nautilus brand for $10.5 million and described a post-divestiture focus on BowFlex, Schwinn, and JRNY.
Distress drivers. BowFlex told CNN the bankruptcy was driven by a "post-pandemic environment and persistent macroeconomic headwinds," describing production ramp-ups after 2020 holiday demand that later left the company with excess inventory when demand slackened and retailers canceled advance orders.
Axios reported that BowFlex derived more than 46% of revenue from cardio products and experienced a 28.5% drop in direct-to-consumer cardio sales over the last nine months of 2023, citing an industry observation that consumers were "more interested in weights now than cardio."
Oregon Business reported that the company had been seeking "strategic partnerships and sources of capital infusion" since summer 2021, quoting CFO Aina Konold stating that "the marketplace is now saturated with product offerings." Athletech News reported in February 2024 that BowFlex warned its future was "in doubt" and had been exploring strategic alternatives in the month before the filing.
Workforce impacts. Oregon Public Broadcasting reported that the Vancouver, Washington-based company signaled it would lay off more than 200 employees. KGW reported that BowFlex announced layoffs of 202 workers in Clark County starting in April 2024.
Prepetition Term Loan and Crystal Financial DIP
Capital structure at filing. The First Day Declaration described roughly $16 million of funded debt under a term loan facility secured by a first-priority lien on substantially all assets, alongside roughly $60 million of trade and other general unsecured obligations, primarily accounts payable.
BowFlex listed $140 million in assets and $126 million in liabilities in its bankruptcy filing, with more than $60 million owed to component suppliers and manufacturing partners.
DIP financing. The company said the DIP totaled $25 million and included a $9 million revolving commitment plus a $16 million term loan roll-up, with financing provided by Crystal Financial LLC d/b/a SLR Credit Solutions. The unsecured creditors' committee objected to the DIP structure, including the roll-up, lien scope, release/challenge protections, and investigation mechanics.
DIP terms. The DIP Motion described a facility with pricing tied to term SOFR plus a margin, a default-rate step-up, and an unused-line fee. The motion also described budget-based controls: a weekly compliance certificate cadence and variance tests comparing receipts and operating disbursements to an approved budget, using 90% (receipts) and 110% (disbursements) thresholds.
| Total facility (filings) | $25 million total authorized |
| New-money component (filings) | Up to $9 million revolving DIP loans |
| Roll-up component (filings) | Up to $16 million rolled into a DIP term loan |
| Pricing (filings) | Adjusted term SOFR + 8.25%; default rate +2.00%; unused-line fee 0.75% p.a. |
| Budget governance (filings) | Weekly compliance certificate and budget variance reporting |
| Variance tests (filings) | Receipts ≥90% of budget; operating disbursements ≤110% of budget |
Carve-outs and investigation budget. The Final DIP Order described a pre-trigger professional fee carve-out tied to the DIP budget (up to $550,000 per week with an aggregate cap of $2.75 million), a post-trigger professional fee carve-out capped at $250,000, and a committee investigation budget up to $50,000 (for investigation but not prosecution). The order also capped chapter 7 trustee fees at $10,000 if a chapter 7 trustee were appointed.
Section 363 Sale to Johnson Health Tech Retail
Sale process. BowFlex's sale was structured around a stalking horse asset purchase agreement with Johnson Health Tech Retail at a stated price of $37.5 million cash at closing. The Bidding Procedures Order set a bid deadline of April 5, 2024, an auction date of April 8 if needed, an objection deadline of April 11, and a sale hearing on April 15, with closing required by April 22 absent lender consent to extend. The order approved stalking horse bid protections that included a break-up fee equal to 3.5% of the $37.5 million price, an expense reimbursement cap of $600,000, and a 10% good-faith deposit held in escrow.
Assumption and assignment. The bidding procedures order established a notice framework for contract counterparties and cure amounts and required objections to be filed by the sale objection deadline (or a later supplemental deadline). If a cure dispute was not resolved before the sale hearing, the order contemplated segregating disputed cure amounts pending resolution and proceeding with assumption and assignment mechanics.
Sale order. The Sale Order approved the transaction as a section 363 sale free and clear of liens, claims, and interests (except assumed liabilities), and included good-faith findings under section 363(m). The order also included successor-liability disclaimers: the purchaser was not treated as a successor by merger or de facto merger theories and was not liable for claims other than those expressly assumed. Johnson Health Tech described the acquisition as expanding its market presence across its fitness portfolio.
Plan Confirmation and Liquidating Trust Administration
Plan confirmation. The court entered a Confirmation Order on August 19, 2024, confirming a chapter 11 plan of liquidation, and the plan's effective date occurred on August 23, 2024. The plan implemented a liquidating trust structure designed to hold remaining assets, pursue retained causes of action, administer claims objections, and distribute recoveries to trust beneficiaries.
Liquidating trust structure. Under the Second Modified Plan, holders of allowed general unsecured claims became liquidating trust beneficiaries and received non-transferable liquidating trust interests entitling them to a pro rata share of the liquidating trust recovery pool. The plan identified UMB Bank, N.A. as the liquidating trustee (or a successor trustee appointed under the governing trust agreement). Remaining assets — including cash, equity interests in certain subsidiaries, retained causes of action (subject to release limitations), tax refunds, deposits, letters of credit, holdbacks, and other property not sold in the transaction — vested in the liquidating trust on the effective date, while amounts reserved for administrative and priority claims were excluded.
Class treatment. The confirmed plan categorized claims and interests into classes: secured and priority claims addressed through cash payment or agreed treatment, general unsecured claims receiving the residual trust interest, and intercompany/subordinated claims and equity interests canceled.
| Class 1 | Other Secured Claims | Cash in full on effective date or other agreed treatment |
| Class 2 | Other Priority Claims | As determined by court or agreed |
| Class 3 | General Unsecured Claims | Pro rata liquidating trust interests |
| Class 4 | Intercompany Claims | Canceled/discharged/terminated on effective date |
| Class 5 | Subordinated Claims | Canceled/discharged/terminated on effective date |
| Class 6–7 | Equity interests | Canceled/discharged/terminated on effective date |
Releases and opt-outs. The Confirmation Order reflects that the plan included release, exculpation, and injunction provisions and offered opt-out mechanics for third-party releases through solicitation packages and opt-out forms. The confirmation order described the liquidating trust as the estate representative for retained causes of action, with authority limits set by the plan and liquidating trust agreement.
Post-effective deadlines. The effective date occurred on August 23, 2024. The Effective Date Notice set a September 23, 2024 deadline for certain post–April 23 through effective date administrative claims (other than professional fees) and for rejection damages claims, and set an October 7, 2024 deadline for professional fee applications.
Claims agent. The court authorized Epiq Corporate Restructuring, LLC to serve as the administrative advisor with claims management and noticing functions. The services schedule described Epiq maintaining official claims registers, providing an online proof-of-claim filing tool, processing claims submissions, and preparing and serving required case notices.
Frequently Asked Questions
When did BowFlex file for chapter 11 bankruptcy?
BowFlex filed chapter 11 petitions on March 4, 2024 in the U.S. Bankruptcy Court for the District of New Jersey.
Where was the BowFlex bankruptcy case filed and who was the judge?
The case was filed in the U.S. Bankruptcy Court for the District of New Jersey. The lead case proceeded as Case No. 24-12364 before Hon. Andrew B. Altenburg Jr.
Why did BowFlex file chapter 11?
BowFlex attributed the filing to a post-pandemic demand reset and macro headwinds, describing a production ramp-up followed by excess inventory and retailer order cancellations as demand slackened. Other coverage highlighted a shift in consumer demand within fitness categories, including declining cardio demand.
What was BowFlex’s sale process and who bought the company’s assets?
BowFlex pursued a section 363 sale process in chapter 11 and entered into a stalking horse agreement with Johnson Health Tech Retail. Johnson Health Tech said it acquired the BowFlex, Schwinn, and JRNY brands and closed the transaction on April 22, 2024. BowFlex's chapter 11 announcement described the purchase price as $37.5 million cash at closing.
Was BowFlex sold in 2024?
Yes. The bankruptcy court approved the sale to Johnson Health Tech Retail on April 15, 2024, and Johnson Health Tech said the transaction closed on April 22, 2024.
What was BowFlex’s DIP financing in chapter 11?
BowFlex obtained a $25 million DIP facility that combined up to $9 million of new-money revolving availability with a $16 million roll-up into a DIP term loan, provided by Crystal Financial LLC d/b/a SLR Credit Solutions.
How did BowFlex’s chapter 11 end?
After the 363 sale closed, the case transitioned to a chapter 11 plan of liquidation implemented through a liquidating trust. Court filings reflect that the plan was confirmed on August 19, 2024 and became effective on August 23, 2024.
What happened to BowFlex shareholders in bankruptcy?
Court filings reflect that equity interests were canceled on the plan’s effective date as part of the liquidation plan, while general unsecured creditors received liquidating trust interests representing a pro rata share of the trust’s recovery pool.
Who is the claims agent for BowFlex?
Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.
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This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.