BowFlex Inc. (formerly Nautilus, Inc.)

What does BowFlex Inc. own?
BowFlex Inc. owned the Bowflex, Schwinn Fitness, and Nautilus fitness brands, along with the JRNY digital fitness platform. The company sold the Nautilus brand in May 2023. Following the Chapter 11 bankruptcy filing in March 2024, all remaining assets including the Bowflex and Schwinn Fitness brands were sold to Johnson Health Tech for $37.5 million. The company no longer owns any operating brands or assets.

Is BowFlex Inc. publicly traded?
BowFlex Inc. was publicly traded on the New York Stock Exchange under the ticker NLS until March 5, 2024, when it was delisted following its Chapter 11 bankruptcy filing. Trading continued on the over-the-counter market under the ticker BFXXQ. The company is in liquidation and shares are highly speculative. Common stockholders are unlikely to receive any distribution from the bankruptcy estate.

Who founded Nautilus, Inc.?
The corporate entity was founded in 1986 as Direct Focus, Inc. in Vancouver, Washington. The Nautilus brand itself was created by Arthur Jones in the 1970s. Direct Focus acquired the Bowflex brand in 1999, the Nautilus brand in 2001, and the Schwinn Fitness brand in 2002, then renamed itself Nautilus, Inc. in 2003. The company later renamed itself BowFlex Inc. after selling the Nautilus brand in 2023.

Where was BowFlex Inc. headquartered?
BowFlex Inc. was headquartered in Vancouver, Washington, USA, where it maintained corporate offices and distribution operations. The company was founded in Vancouver and remained there throughout its operating history. Approximately 202 workers were laid off at the Vancouver facility in March 2024 as part of the bankruptcy filing.

How many brands did BowFlex Inc. own?
At its peak, BowFlex Inc. owned three primary fitness brands: Bowflex, Schwinn Fitness, and Nautilus, along with the JRNY digital fitness platform. The company sold the Nautilus brand in May 2023. After the Chapter 11 bankruptcy filing in March 2024, the remaining brands were sold to Johnson Health Tech. The company no longer owns any brands.

Who owns BowFlex Inc.?
BowFlex Inc. was a publicly traded company with no controlling shareholder. Its shares were held by institutional investors, mutual funds, and individual shareholders. Following the Chapter 11 bankruptcy filing and asset sale, the corporate entity exists solely for liquidation purposes. Under bankruptcy law, secured and unsecured creditors must be paid in full before any distribution to shareholders. Common stockholders are unlikely to receive any compensation.

What happened to BowFlex (Nautilus, Inc.)?
BowFlex Inc., formerly Nautilus, Inc., filed for Chapter 11 bankruptcy on March 4, 2024, after revenue declined from approximately $560 million in FY2021 to approximately $191 million in FY2024. The company sold substantially all assets to Johnson Health Tech for $37.5 million. The sale closed on April 22, 2024. The NYSE delisted the company's shares on March 5, 2024. The company is now in liquidation.

What is JRNY?
JRNY was BowFlex's digital fitness platform that provided workout content, coaching, and personalized training programs for connected Bowflex and Nautilus equipment. JRNY competed with Peloton's digital platform and iFIT's platform but had a smaller content library and user base. The JRNY platform was included in the asset sale to Johnson Health Tech in April 2024.

The Nautilus brand predates the corporate entity by more than a decade. Arthur Jones, an American inventor and entrepreneur, developed the original Nautilus exercise machines in the 1970s. Jones's machines used a cam-based mechanism that provided variable resistance throughout the range of motion, a significant improvement over traditional free weights. He founded Nautilus Sports/Medical Industries to manufacture and sell these machines, and Nautilus equipment became standard in gyms and fitness centers throughout the 1970s and 1980s.

The corporate entity that would eventually acquire the Nautilus brand was founded in 1986 as Direct Focus, Inc. in Vancouver, Washington. Direct Focus initially operated as a direct-to-consumer marketing company.

In 1999, Direct Focus acquired the Bowflex brand and its home fitness equipment business. Bowflex had been founded in 1986 and was known for its home gym systems using resistance rods rather than traditional weights. The acquisition gave Direct Focus a strong direct-to-consumer fitness brand and established the company in the home fitness market.

In 2001, Direct Focus acquired the Nautilus brand and its commercial fitness equipment business from the original Nautilus company. This brought the iconic Nautilus name and its commercial gym equipment line into the portfolio.

In 2002, Direct Focus acquired the Schwinn Fitness brand, the fitness equipment division of the Schwinn bicycle company. Schwinn Fitness was known for its indoor cycling bikes and cardio equipment. The acquisition did not include the Schwinn bicycle brand itself.

In 2003, Direct Focus renamed itself Nautilus, Inc. to reflect its ownership of the most iconic brand in its portfolio. The company grew significantly through the 2000s, driven by strong direct-to-consumer sales of Bowflex home gyms and Nautilus treadmills. The company began publicly trading on the New York Stock Exchange in May 1999.

The 2008-2009 recession hit the company hard as consumers cut discretionary spending. Nautilus underwent significant restructuring, reducing its workforce and focusing on its most profitable products.

In the 2010s, the company faced increasing competition from Peloton and other connected fitness companies. Nautilus responded by developing its own connected fitness products, including the Bowflex VeloCore bike and the JRNY digital fitness platform.

The COVID-19 pandemic created a surge in home fitness demand. Revenue reached approximately $560 million in fiscal year 2021. The company's stock price rose significantly during this period.

The post-pandemic period was devastating. Revenue declined from approximately $560 million in FY2021 to approximately $590 million in FY2022, then to approximately $191 million in FY2024. The NYSE notified the company in September 2023 that it faced potential delisting because its stock traded below $1 per share for more than 30 consecutive days. A second delisting notice followed in December 2023 regarding the company's market capitalization.

In May 2023, the company sold the Nautilus brand, its namesake, as part of efforts to raise cash and streamline operations. The company subsequently renamed itself BowFlex Inc.

On March 4, 2024, BowFlex Inc. filed voluntary petitions for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. The filing included a stalking horse asset purchase agreement with Johnson Health Tech Retail, Inc. to sell substantially all assets for $37.5 million in cash. The Bankruptcy Court approved the sale on April 15, 2024, and the transaction closed on April 22, 2024.

The NYSE delisted BowFlex shares on March 5, 2024. Trading continued on the over-the-counter market under the ticker BFXXQ. The company ceased operations at its primary operating subsidiary, BowFlex New Jersey LLC, in August 2024 as the liquidation process advanced.

BowFlex Inc. filed for Chapter 11 bankruptcy on March 4, 2024, in the United States Bankruptcy Court for the District of New Jersey. The filing followed a sustained revenue decline from approximately $560 million in FY2021 to approximately $191 million in FY2024, driven by post-pandemic normalization of fitness behavior and intense competition in the home fitness market.

The NYSE delisted the company's shares on March 5, 2024, after the stock traded below $1 per share for an extended period and the company's market capitalization fell below exchange minimums. Trading continued on the over-the-counter market under the ticker BFXXQ.

The company faced product safety issues during its operating period, including recalls of certain treadmill models. In 2022, the company recalled approximately 17,000 Bowflex Results Series treadmills due to a fall hazard caused by a latch issue.

The bankruptcy process resulted in the sale of substantially all assets to Johnson Health Tech for $37.5 million, approved by the court on April 15, 2024. The sale closed on April 22, 2024. Under Chapter 11 proceedings, common stockholders are last in the priority of claims and are unlikely to receive any distribution from the liquidation estate.