Troubled Vancouver fitness company Bowflex says it is running out of cash and there is “substantial doubt” whether it can continue operating.
Bowflex, known as Nautilus until last year, said in a regulatory filing last week that it was facing a cash crisis, operating losses and “adverse market conditions.”portland business journal first reported the application.
Bowflex also said last quarter’s results will be postponed indefinitely as the company’s management is busy exploring “strategic alternatives.” This phrase is a euphemism used by companies when they are trying to sell or otherwise dispose of their business.
The company began exploring strategic alternatives in September 2022. Last year, the Vancouver company, then known as Nautilus, sold the rights to the name to shore up its cash flow.
BowFlex sells consumer exercise equipment under the BowFlex, Schwinn, and JRNY brands. The company’s performance soared during the pandemic, when gyms were closed and people eager to work out at home, but has since fallen sharply.
BowFlex’s latest financial results show revenue totaled $90.4 million in the six months to September. This was a 25% decrease compared to the same period last year.
BowFlex reported a loss of $17.5 million in the first six months of the current fiscal year, compared to a loss of $73.4 million in the prior year. The company had $10.3 million in cash at the end of September, down from $17.5 million in March.
BowFlex’s stock lost almost all its value, closing at 28 cents on Tuesday. This gives the company a market value of $10.2 million. In early 2021, just before a COVID-19 vaccine became widely available, the stock was close to $30. ”
— Mike Rogoway covers Oregon technology and the state’s economy. Please contact us at [email protected].
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