Outdoor Voices is in the middle of a firestorm after former employees have revealed the troubled activewear company is headed towards bankruptcy, following reports that the brand is closing all stores and transitioning to an online-only retail model.

The brand has seemingly removed all of its 15 brick-and-mortar retail locations nationwide from its website. 

The news of the potential insolvency was first reported by Sourcing Journal, which cited former Outdoor Voices employees with close knowledge of the matter. The activewear brand has also missed rent and vendor payments in recent months, according to the publication, and gave pink slips to most of its corporate employees.

According to another report, from Puck News, Outdoor Voices has already closed all of its retail locations and intends to focus solely on its e-commerce business.

Rise & Fall

Like Lululemon, Outdoor Voices has developed a cult-like following as devotees of the brand have embraced its merchandise as much as its #doingthings lifestyle ethos. Founded in 2013 by Tyler Haney, the brand moved from its New York City roots to Austin, Texas, as it grew. 

By early 2020, right before activewear and athleisure began to see a pandemic-related boom, Haney stepped down as CEO during restructuring efforts. Internal strife had been brewing and an anonymous letter had been sent to the Outdoor Voices’ board and executives that targeted Haney for her management style.

Financial troubles were also percolating, with the company’s valuation down to $40 million in 2020, a steep decline from its 2018 valuation of $110 million. By 2021, the brand had named Gabrielle Conforti, former Urban Outfitters president, as its CEO. 

The activewear company had begun shopping for a buyer in 2022, according to Business of Fashion. 

Haney may have been out of the picture, focusing on Joggy, a cannabis supplement brand, but she appeared to find time to keep a watchful eye on the brand she founded — even leaving comments last year on Outdoor Voices’ social media posts that indicated she had felt the brand had lost its way. 

Now, with news swirling of a potential Outdoor Voices bankruptcy, the active Reddit community on r/OutdoorVoices has been posting images of closed stores, many with notes in the windows that have the Venmo handles of former employees. One photo from a shop in Minneapolis reads, “Our (chairwoman) Ashley Merrill refuses to pay anyone severance. We appreciate anything that you can give. All funds will go directly to this staff. Thank you!” 

Activewear Brands Struggle Post-Pandemic 

It’s been a trying time for some in the activewear game, with leggings giant Lululemon even admitting that it will remain cautious in 2024 in the face of market uncertainty.

Gap’s activewear arm, Athleta, reported an 18% net sales drop in its third quarter of fiscal 2023 compared to the prior year, noting in its earnings release that sales continued to be a challenge. Athleta has said it would work on re-engaging its core customers.

Activewear brand Bandier had also been looking for a buyer to mitigate supply chain challenges before getting acquired along with Carbon38 by BC Brands in January. 

More traditional sportswear giants have also seen some headwinds. Under Armour also reported slowing sales, and Nike cut its annual revenue forecast, announcing a $2 billion cost-savings plan that included restructuring.

One outlier is Gymshark, which recently reported a rather uncommon push-and-pull situation, having experienced slumping profits in 2023 (reporting $16.5 million, down from $35.3 million) but a 15% revenue increase. The brand, founded and led by U.K.’s youngest billionaire, Ben Francis, is going full-steam ahead. 

Outdoor Voices didn’t immediately respond to Athletech News’ request for comment

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Burn Boot Camp is fueling its nationwide expansion and providing its franchisees with financial options, partnering with ApplePie Capital, a firm specializing in franchise business lending.

The fitness brand made Entrepreneur’s Franchise 500 list earlier this year and recently launched its first national brand campaign as it eyes growth.

Pat Harding, vice president of finance at Burn Boot Camp, said the franchise selected ApplePie Capital for its ability to offer a dedicated lending program that specifically addresses the financial needs of Burn Boot Camp’s franchise partners.

“ApplePie Capital is our preferred financing vendor because their focus is on the long-term success of our franchise partners and helps make access to the capital they need predictable and easy,” Harding said.

The financial firm noted the financial health of the group strength and conditioning franchise, particularly its rapid growth.

Founded in 2012, Burn Boot Camp began franchising in 2015, having grown to over 335 operating locations and 550 territories sold. 

“Every year, we look at thousands of Franchise Disclosure Documents (FDDs) to find the brands that are showing the strongest growth and the best track records of unit-level economics,” said Jamie Davis, vice president of business development at ApplePie Capital. “We are very selective and are focused only on franchise brands that have a desire to grow with a strong capital markets partner behind them. Burn Boot Camp definitely fits that mold with a passion for the brand that cuts across the entire organization.”

Burn Bootcamp is projecting 10,000 global units by 2033 as it ramps up its expansion efforts.

The total estimated initial investment for prospective Burn Boot Camp franchisees is $239,225 – $562,979, with an initial franchise fee of $60,000. 

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The $1.8 trillion global wellness market, coupled with advancements in biometric tracking and health technology, has investors banking on the future of wellness.

Renowned cyclist and endurance athlete Lance Armstrong’s Next Ventures is the latest VC fund to get in on the wellness craze, targeting $100 million — its first fund in almost five years — to invest in whole-person health, preventive care and diagnostics.

Next Ventures managing partner Julian Eison, was forthright:

“We said, hey, this whole consumerization of health is omnipresent,” Eison told PitchBook, which reported on Next Ventures’ plans to write pre-seed, seed and Series A checks with an average check size of $2 million. 

It’s a viewpoint shared by other leading investors and experts.

As Jon Canarick of North Castle Partners, Mark Grabowski of Snapdragon Capital Partners and Lance Dietz of KB Partners shared during Athletech News’ DISRUPT 2023 video series, there is an overall sense of optimism surrounding the health, fitness and wellness markets. 

“I think almost universally there’s growth in consumer expenditure in health and wellness across multiple categories,” Grabowski said, noting that the industry as a whole is on an “upward trajectory.” 

Wearables Track More Than Just Fitness

He also indicated that health and fitness trackers have even more runway, especially with consumers embracing preventive wellness practices. Advancing technology also means that wearables no longer cater to elite athletes or weekend warriors. Instead, consumers of all ages and in any health condition can track their health metrics, widening the available consumer market.

“When you think of everything from blood testing to stool samples, there you’re actually addressing some different issues,” Grabowski pointed out. “It’s not about, ‘Am I optimizing my workout performance?’ It’s about allergies, chronic issues, immune responses and other things that people are dealing with.” 

Investors are taking note, with Ultrahuman’s multi-device ecosystem the latest funding recipient. The company just secured $35 million in a Series B to advance its health monitoring endeavors, which include a smart ring, a continuous glucose monitor (CGM), a ‘Blood Vision’ system and an upcoming home health device that assesses environmental impacts on well-being. 

Next Ventures’ portfolio touts some notable health and wellness names, including smart ring brand Oura, AI wearable company Humane and Genopets, a move-to-earn game. The VC fund also invested in Utah-based Amp Human in 2019, maker of PR Lotion, which merged with Momentous, a ‘human performance” supplement brand.

As for Oura, the smart ring maker is expected to enter a “health-focused” chapter, having recently welcomed an executive from the Apple Health team and signing a deal to make its wearable device FSA/HSA eligible. 

Wellness CPGs Gain Steam, Too

Tech may always be a hot area for its jaw-dropping capabilities that seem to advance each week, but good old consumer packaged goods have been receiving the attention of investors, too — especially those in the wellness categories. 

Even major retailers like Target are banking on the wellness wave, introducing over 1,000 health-supporting products across all verticals. For good reason, too: consumers have not only become more health-conscious, but GLP-1 users have redirected their spending away from unhealthy items and toward wellness purchases.

Bloom Nutrition, a supplement brand in the greens and superfoods category recently scored a major investment from C4 maker Nutrabolt. 

Health and wellness guru/A-lister Gwyneth Paltrow, no stranger to all things green juice and longevity-supporting, is also eyeing the power of products with wide appeal. The goop founder has turned feeling good into a profitable brand, catering to the masses with a new line of budget-friendly wellness and beauty products, a departure from goop’s higher-priced items. 

Paltrow’s Los Angeles-based VC firm, Kinship Ventures, has reportedly sought to raise $75 million for its debut fund, eyeing early-stage consumer goods and tech companies.

Over on the East Coast, Humble Growth, a N.Y.-based growth equity firm launched by an all-star team that includes RxBar founder Peter Rahal, secured over $312 million for its debut. Earlier this year, Humble Growth acquired a significant minority stake in Momentous in a deal worth $32 million.

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The BXNG Club, a San Diego-based chain of luxury combat-based fitness clubs, has initiated a funding round with the hopes of securing $2 million to advance its strategic expansion plans. 

Adding to its four San Diego locations, a high-design facility in the Arts District of Los Angeles is slated to open in the second half of this year, complete with two boxing rings, 50-plus heavy bags and specialty bags, a tailored grappling area, a functional training space with Olympic lifting platforms, a weight room and a cardio deck. 

A wide range of 45-minute fitness classes are available, including boxing, Muay Thai, Jiu-Jitsu, kickboxing, cycling, yoga and cardio and strength workouts. Clients will have access to upscale locker rooms, saunas, towel service, and an exclusive members lounge. The brand also offers one-on-one personal training.

An early bird membership is available for the LA-based club at $139/month or $1,399 for a founding member annual membership.

“BXNG and Los Angeles are made for each other —- we are bringing our innovative fitness concept, an unmatched level of coaching and a focus on member experience while LA brings unparalleled fitness-focused culture,” said CEO Artem Sharoshkin, who was named CEO of The Year by San Diego Business Journal. “Together, we will create a chemistry for success,” 

Sharoshkin has had an interesting journey, from an 18-year-old taking a kickboxing class to joining as an employee, working his way up the ladder at what was once known as The Boxing Club. By 2014, Sharoshkin had become the owner and rebranded The Boxing Club to The BXNG Club, telling The San Diego Tribune in 2022 that he has ambitions to grow the brand nationally. 

The BXNG Club says it’s pursuing aggressive expansion that includes locating spaces with existing infrastructure, negotiating creative leases with landlords impacted by COVID-19 and sourcing under-market-value real estate deals. 

A limited number of equity investments are available to accredited investors, with a minimum investment of $50,000. All-access memberships are included for investors, including discounts on personal training and branded apparel.

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BODi, formerly known as Beachbody, the OG of subscription health and fitness systems, expects positive cash flow in Q1 — the first time since 2020 — following a “transformational” 2023. The company just released its financial earnings, reporting a total revenue of $119.0 million in Q4 of 2024, compared to $148 million in the prior year period. Total revenue for the full year 2023 was $527.1 million, compared to $692.2 million in the prior year.

Despite the seemingly lackluster financial results, BODi’s executive team tells Athletech News they’re bullish on the company’s future, driven by a focus on improving cash flow and leaning into digital fitness and holistic wellness content, including an embrace of GLP-1s.

The company known for its high-energy fitness coaches such as Autumn Calabrese, Shaun T, Tony Horton and Shakeology protein shakes, underwent a major rebrand from Beachbody to BODi last year, adopting a more holistic approach to health and wellness. The move also included a major declaration from Carl Daikeler, the company’s co-founder and CEO: “Beachbody is dead.”

In place of the old and tired diet and fitness industry playbook, Daikeler explained his vision for the future — one in which a positive mindset was woven into the health and fitness experience, combatting what he called a “permanent dissatisfaction” that many consumers experience.

It’s not a quick fix, especially in a highly competitive industry, but BODi is encouraged by early results, including high search traffic volume following its makeover. Reflecting on 2023’s earnings, Daikeler says BODi’s self-described “turnaround plan” has been successful so far, with the company lowering its breakeven point and enhancing its liquidity.

“In 2024, our objective is fostering more profitable revenue streams and sustainable free cash flows, with a renewed focus on reshaping our nutrition business,” Daikeler said. “Our accomplishments in 2023 set the foundation for continued execution of our turnaround in 2024. We expect to have positive cash flow from operating activities and free cash flow in the first quarter.”

BODi has also offloaded its Van Nuys, California, production facility for $6.2 million, using the net proceeds to make a partial prepayment on its $5.5 million term loan.

BODi’s Financial Overhaul

Mark Goldston, executive chairman of BODi’s board of directors, partnered with Daikeler last year to guide the company’s transformation, drive profitability and unlock growth opportunities. He also serves as chairman and CEO of The Goldston Group and is a general partner of Athletic Propulsion Labs, a high-end performance athletic footwear company — lending his expertise to revitalize and reposition BODi back on its fitness throne.

“Since the start of the program, we are on track to achieve over $200 million in fixed costs and CapEx savings in 2024 over 2021, and introduced a more efficient sales and marketing model that aims to deliver a 1,000 (basis points) bps improvement in 2024,” Goldston tells Athletech News. “This dramatically lowers the revenue breakeven for the company. By building operating leverage into the P&L, our dramatically lower cost base has the potential to generate strong incremental profitability when we return to revenue growth.”

Last year, the company also introduced a new “Growth Game Plan” that rewards high-performing network sales partners within its subscription health and fitness system.

King of Fitness Content

Touting its extensive digital fitness library of 134-plus programs with widely-known titles such as P90X, Insanity, 21-Day Fix and Lift More, BODi is leaning into its content offering, having refined its appeal.

“We think of BODi as being the ‘Netflix’ of the digital fitness industry, and we are doing a much better job of leveraging that library,” Goldston said. “That includes creating our first-ever free BODi Previews tool that features over 120 individual workouts and allowing even more consumers to enter into our community.”

Goldston also shared that BODi is expanding its retail and direct marketing business to bring the benefits of its fitness content and nutritional products to a broader audience.

“Our BODi digital fitness app was recently named the #1 workout app last year by CNN Underscored, so we’re being recognized for the impact we’re making for modern fitness consumers,” Goldston said.

Embracing Wellness & Weight Loss Drugs

Unafraid of GLP-1 weight loss drugs, BODi instead sees a significant opportunity. 

“With over 145 million American adults categorized as overweight and more than 75 million of those people considered clinically obese, the TAM for BODi is massive,” Goldston predicts, adding that many people who are considerably overweight may experience difficulty starting an exercise program and are self-conscious about going to a gym. 

“The GLP-1 drug movement is designed to address the 145 million people who are overweight, especially the clinically obese, and we strongly believe that those drugs will unlock a major TAM opportunity for BODi largely because a large group of people will lose enough weight to safely and comfortably consider starting an exercise program in the privacy of their own home,” he continued.

Goldston also referenced the need for GLP-1 users to maintain a healthy eating regimen, which he sees as a major “boon for BODI” in terms of its meal plans and nutritional supplement offerings. 

As for BODi’s fitness content, Goldston pointed out that the platform’s fitness programs can help offset the loss of muscle mass. 

“The GLP-1 drugs have been known to have an adverse effect on lean muscle mass, and therefore, the use of programs like those contained in the BODi library will help reduce the risk of losing lean muscle mass and help people maintain and gain strength while getting their weight under control and improving their overall level of fitness,” he said.

While BODi forges ahead, fortified by its vast digital fitness content and nutritional supplements, Goldston also sees the subscription health and fitness system taking center stage to meet an even bigger trend.

“I believe that the industry has truly embraced a more holistic approach to fitness,” he said. “While there is no easy fix to maintaining a healthy life, there are benefits to a balanced approach. Consumers continue to look for guidance and that is a fundamental core principle of our approach at BODi. At BODi, it’s that balanced approach that makes us unique.”

This article has been updated.

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9Round Kickboxing Fitness now owns all 56 iLoveKickboxing locations across the U.S. and Canada following a deal to acquire the kickboxing group fitness franchise.

According to the sides, members can continue to expect the heart-driven branding of iLoveKickboxing and its scheduled group class format, while 9Round will continue to serve its members with flexible, 24/7 access and individual workouts within its nearly 500 global locations.

Financial terms of the deal weren’t disclosed.

“We believe in the power of kickboxing to transform lives, and this acquisition allows us to share that passion with even more people,” said 9Round CEO Shannon Hudson, a professional kickboxer who founded the concept in 2008 with wife, Heather. 

“Our future goal is to surpass the 100-location milestone, expanding the reach of ILKB,” Hudson added. “Right now, we are committed to supporting our existing franchise owners and, in due course, will offer new opportunities for entrepreneurs to join our thriving community.”

iLoveKickboxing, founded in 2012, offers a signature 45-minute group fitness class, while some locations host extended 60-minute and 30-minute express classes. Heart rate monitors are available to wear to optimize the kickboxing workouts, with a recap sent via email with valuable insight such as class points, Zone summary and calories burned.

The kickboxing franchise announced it had been acquired on LinkedIn, noting that the move will bring new growth opportunities. Former iLoveKickboxing CEO Dan Castellini remarked that the fitness franchisor is confident it will continue to grow and flourish under the new ownership agreement.

“ILKB’s community-focused class approach empowers individuals on their fitness journey and complements 9Round’s convenience offering,” he said. “Together, the two brands will work to promote wellness and expand the love of kickboxing across the U.S.”

9Round Drives Revenue With 24/7 Model

The South Carolina-based 9Round introduced ‘9Round 365,’ a forward-thinking and low-labor model late last year for its franchisees. The “always open” 9Round model also allows kickboxing members to drop in for a self-guided session at any time or enjoy a workout during trainer-led hours.

“The new technology empowers us to meet our members where they are in their fitness journey,” Hudson said. “During our pilot phase, we saw same-studio memberships increase by 15%, proving people are looking for more customized, tailored workouts. Whether you prefer self-guided training, a group fitness experience or personal coaching, 9Round has you covered.”

One 9Round franchisee in California experienced an 8% increase in revenue following the pilot program’s launch.

“For the first time since before the pandemic, I feel really confident that my studio and my members are on the right path to thrive,”  said Steve Rousey, owner of 9Round Huntington Beach, California.

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Luxury lifestyle and health club operator Equinox has secured approximately $1.8 billion in new capital to refinance maturing loans, fund general corporate purposes and build new clubs. The brand also secured a new revolving credit facility from Goldman Sachs, Morgan Stanley and J.P. Morgan.

Equinox reported a 27% revenue increase in 2023 and a record-high member engagement. In addition to its 107 global clubs, the brand has a pipeline of 25-plus new locations in the works across major markets while Equinox continues to explore domestic and international opportunities. 

“We are seeing record performance in revenue growth and member engagement, which demonstrates our position as the global leader in high-performance luxury lifestyle,” said Harvey Spevak, executive chairman and managing partner of Equinox Group, which also encompasses Equinox Hotels, SoulCycle, Blink Fitness and E by Equinox. 

Member engagement may be at an all-time high due in part to Equinox Circle, a member perks program that debuted last year and is rich with top-of-the-line brand partners such as Oura, Bezel, Thorne, Provenance and Blade.

“These new strategic investments from a group of world-class partners that share our vision for the Equinox brand will empower us to accelerate further growth through new club openings and new innovative offerings, as well as by scaling the Equinox luxury experience,” Spevak added.

The financing includes capital from a mix of new and existing investors led by Sixth Street and Silver Lake and includes investments from Ares Management, HPS Investment Partners, L Catterton and the principals of the Related Companies.

The luxury lifestyle and fitness brand bulked up its staff, hiring 5,000 fitness coaches as Equinox members expressed continued interest in personal training services. Similarly, Equinox is listening to the needs of its clients on weight loss medications such as Ozempic and Wegovy — or those who are interested in using GLP-1s, rolling out a personal training program designed for those on weight-loss drugs.

“The drugs work so well, but we felt like something really important was missing for our clients on them,” Equinox club coach Michael Crandall said of the new program. “Weight loss interventions should always be done with a training program to get the best results.”

Crandall is leading the new program, following Equinox’s introduction of a Health Advisory Board featuring medical and wellness experts designed to support the Equinox Fitness Training Institute, which offers accredited curriculum and board certification for performance coaches.

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The fitness franchise industry has seen remarkable transformations over the years, with 2024 marking a pivotal point in its evolution.

Amidst a landscape of innovation, sustainability and personalized wellness, fitness franchises are redefining what it means to be fit, both physically and mentally. With high CAGR growth, the Fitness Franchise industry is flushed with interest amongst new franchise investors and new founders. At the heart of this transformation is a cadre of visionary leaders who exemplify the drive and innovation steering the industry forward.

To get a pulse on the fitness franchise category growth and forecast in 2024, we dove into the details with helpful insight from a well-known leader in the space. 

Franchise Growth by The Numbers

Franchises like F45 Training and Orangetheory Fitness have rapidly expanded their global footprint, with F45 Training boasting over 1,700 locations and Orangetheory Fitness over 1,500 locations worldwide. These numbers underscore the scalability and consumer appeal of these fitness models, particularly in offering high-intensity interval training (HIIT) and heart-rate-based workouts that promise effective and efficient fitness results​​. 

Another growth player in the industry yielding significant growth in locations is Fit Body Boot Camp, with nearly 300 locations system wide as of 2024. The organization has twice been listed among Entrepreneur Magazine’s 500 fastest-growing franchises and four times listed on Inc. Fit Body is a great example of high growth within the category, showing potential future growth as a strong indicator for the industry as a whole.

Strategic Considerations for Franchisees

For outsiders looking to enter the fitness franchise industry, understanding trends and consumer behaviors is crucial. The growth in online fitness, the importance of catering to older demographics and the success of specialized fitness franchises offer valuable insights into where the market is headed. 

Additionally, the resilience shown by the industry in the face of economic challenges suggests a strong underlying demand for health and fitness services, making this an opportune time to invest in or expand within the fitness franchise sector. As the fitness industry continues to evolve, staying informed about these trends and leveraging them in business planning and strategy will be key to success in the competitive landscape of 2024 and beyond. 

“At Fit Body Boot Camp, we believe that the key to success lies not just in adapting to trends, but in anticipating them, ensuring that we provide an unmatched fitness experience that meets the diverse needs of our evolving clients,” says Bryce Henson CEO of Fit Body Boot Camp. “There will always be a need for preventive health and wellness services and fitness franchising has become a leading business solution for this ever-growing societal demand.”

“It’s an opportune time for entrepreneurs to invest in a sector where impact and profitability go hand in hand and a growing industry shows indicators of continued bright horizons,” Henson adds.

Technology Integration

The integration of technology into fitness routines has significantly transformed the industry, making workouts more accessible and personalized. Wearable devices now track everything from steps to sleep, offering insights that help users optimize their health routines.

Fitness apps have grown smarter, employing AI to create tailored workout and nutrition plans, adjusting to feedback and progress in real-time. Virtual and augmented reality technologies have introduced immersive exercise experiences, turning routine workouts into engaging adventures. These advancements allow users to explore virtual landscapes or participate in gamified fitness challenges, making exercise more enjoyable and varied.

AI extends beyond personalization, utilizing predictive analytics to prevent injuries by recommending adjustments in workout intensity or form. It also facilitates seamless integration between various devices and platforms, ensuring that users have a holistic view of their health data.

Moreover, the shift towards online and hybrid fitness offerings has democratized access to fitness, enabling users to join classes from anywhere, at any time. This flexibility caters to today’s diverse lifestyles, ensuring that fitness is within reach for everyone, regardless of their schedule or location.

“The integration of AI has been able to bridge the gap between providing personalized recommendations and scalability,” Henson says. “Now being able to both help more people and deliver better client results.”

Community & Corporate Social Responsibility

The fitness franchise industry in 2024 has witnessed a significant evolution, driven not just by the goal of improving physical health but also by a profound commitment to enriching community life and embracing corporate social responsibility (CSR). This transformative approach underscores a broader, more integrated vision of wellness that extends beyond individual fitness goals to encompass societal well-being and environmental sustainability.

Franchises are increasingly active in local communities, leveraging their platforms to foster a sense of unity and engagement. From organizing health awareness events to participating in local clean-ups, the industry’s efforts are aimed at building stronger, healthier communities.

This engagement also extends to supporting charitable causes, with many franchises aligning with organizations that tackle a wide range of issues from mental health to environmental conservation. Such partnerships not only amplify the impact of non-profits but also resonate with consumers who prioritize businesses that contribute positively to society.

Inclusivity has become a cornerstone of the industry’s CSR initiatives. Recognizing the diverse needs of their clientele, fitness franchises are striving to create welcoming environments for all individuals, regardless of their background, ability, or financial status. This includes offering tailored programs for underserved populations and ensuring facilities are accessible to everyone. Such efforts reflect a commitment to breaking down barriers to fitness and wellness, fostering a culture of inclusivity and support.

“The industry’s embrace of corporate social responsibility and community engagement reflects a deeper recognition of our role beyond the gym walls,” Henson says. “By actively participating in local initiatives, we’re not just advocating for individual health but for the collective well-being of our communities. This approach is about forging connections, breaking down barriers to access and ensuring that our contributions leave a lasting positive impact on society.”

Final Thoughts

In 2024, the fitness franchise industry is poised to redefine wellness through a blend of innovative technology, enhanced community engagement and a robust commitment to inclusivity and environmental sustainability. This year is set to witness fitness franchises leveraging advanced digital tools to offer personalized workout experiences, making fitness more accessible to a wider audience.

The emphasis on corporate social responsibility is expected to strengthen ties with local communities, highlighting the industry’s role in promoting societal well-being. As fitness franchises continue to evolve, leaders are not only catering to the changing needs of today’s health-conscious consumers but are also laying the groundwork for a future where fitness is an integral part of a holistic approach to health.

This forward-thinking approach promises to shape the landscape of the fitness industry, ensuring that it remains at the forefront of promoting wellness, inclusivity and sustainability.

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FitLab, the multi-brand performance lifestyle company behind Nike Studios, has some new capital to play with. The fitness platform has secured a $65 million strategic financing facility from Atlas Credit Partners, made up of approximately $35 million funded at closing and $30 million of remaining availability. 

With the capital, FitLab has acquired what the company calls a “cutting-edge fitness equipment manufacturer,” enhancing its ability to weave together all aspects of a customer’s fitness experience and deliver them in a multitude of ways. 

“Our pursuit of excellence extends beyond fitness and wellness innovation, encompassing strategic partnerships that elevate our company,” said Mike Melby, co-founder and co-CEO of FitLab. “We’re thrilled to secure the financing from Atlas to allow us to accelerate our expansion and offer our integrated platform to a broader audience seeking unparalleled fitness experiences.”

FitLab is no stranger to ambitious growth. The company recently agreed to a partnership with GoSaga, an organization that invests in and scales next-gen lifestyle brands across health, wellness, fitness and beauty to launch a minimum of 250 studios across the Northeastern and Mid-Atlantic regions of the United States. 

Right before that, the company inked a deal with Nike to launch Nike Studios, which will include a network of boutique fitness locations, including Nike Training Studios and Nike Running Studios. FitLab also has rights to brands such as Racked, XPT by Laird Hamilton and Gabrielle Reese, and Fast by Conor McGregor. 

Atlas Credit Partners also comes to the table with an impressive track record. The asset management firm has 80-plus years of combined business experience financing cutting-edge, medium-sized institutions such as SoundHoundAI and AST SpaceMobile. They’ve invested a total of over $950 million to date. Atlas agreed to a similar strategic funding deal with wellness brand Hyperice this past summer. 

“FitLab uniquely integrates every channel of the fitness ecosystem into a single, differentiated platform,” said Andrew Sung, head of research at Atlas Credit Partners. “With this acquisition, combined with the company’s ramp of boutique fitness studios and partnership with a best-in-class global brand, we believe that our investment will help accelerate the pace at which the company continues to innovate the fitness experience.”

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At-home fitness equipment manufacturer BowFlex has filed for Chapter 11 bankruptcy, agreeing to a deal that could see Matrix parent company Johnson Health Tech Retail acquire it for $37.5 million.

Johnson Health Tech will operate as BowFlex’s stalking horse bidder, allowing them to acquire all company assets at the close of the transaction, less closing adjustment amounts for accounts receivable, inventory and certain transfer taxes. Other interested parties will have the chance to submit competing offers, but if none beat the $37.5 million price already agreed upon by BowFlex and Johnson, the sale will go through. 

Subject to court approval, BowFlex will also receive $25 million of debtor-in-possession financing from SLR Credit Solutions and its affiliates. Those funds will enable BowFlex to continue its normal operations and meet its financial obligations to employees, vendors and its continued provision of customer orders during the bankruptcy proceedings and while executing the sale process.

“For decades, BowFlex has empowered healthier living and enabled consumers to reach their fitness goals with our innovative home fitness products and individualized connected fitness experiences,” said Jim Barr, BowFlex CEO. “As a result of the post-pandemic environment and persistent macroeconomic headwinds, we conducted a comprehensive strategic review and determined this was the best path forward for our company. We are fortified by the potential partnership with Johnson Health Tech and encouraged by the multiple parties that have indicated an interest in bidding for our company. Our goal is to maximize value for our stakeholders through this process.”

At-Home Fitness Struggles

BowFlex isn’t the only at-home fitness supplier struggling out of the pandemic gates. Peloton has repeatedly seen share prices drop, including a 23% dip last month after lowering its full-year 2024 revenue forecast.

Still, the writing has been on the wall for BowFlex for some time now. In December, the company received a notice from the New York Stock Exchange (NYSE) alerting them of their failure to comply with listing standards, such as maintaining an average global market capitalization of at least $50 million over a 30-day consecutive trading period. 

A few months before that, the Vancouver, Washington-based company was hit with a non-compliance notice, which flagged the brand for having an average closing price of less than $1.00 per share over a consecutive 30-trading day period. Now, BowFlex will enter bankruptcy with $140 million in assets and $126 million in liabilities according to its newly filed petition. 

What’s Next for BowFlex?

Along with Matrix Fitness, Johnson Health Tech also carries wellness companies Horizon Fitness and Vision Fitness. Whether Johnson or another bidder ends up acquiring BowFlex, the move promises to give the once-popular at-home fitness maker a much-needed sense of redirection after recent struggles. 

BowFlex notably underwent a rebrand last year, changing its name from Nautilus to BowFlex to put more emphasis on its strongest brand. The equipment maker also remodeled its BowFlex line, equipping it with brighter visuals, messaging with goal promotions and a more inclusive approach to fitness to hopefully attract younger fitness consumers.

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Saskia Topp is a model, ambassador and entrepreneur who’s obsessed with health and wellness. What started as a passion soon turned into the basis for her fast-growing digital marketing agency, Ekhos. 

“‘Work smarter, not harder’ and ‘Just Do It’ are two mottos I live by,” says Topp. “While I strongly believe in the value of hard work, and am always ready to put in the hours when necessary, I also recognize the importance of efficiency.” 

Topp’s go-getter attitude has certainly contributed to her success as an entrepreneur. 

Her journey in founding a health and wellness digital marketing agency was not a straight trajectory. Topp has a degree in brand building and management, and after working in corporate roles, she decided to pursue modeling. You can find her work in national campaigns from Under Armour to Nivea sunscreen commercials where Topp and her on-screen family have some fun in the sun. It was during her eight-year modeling career that Topp became obsessed with health and fitness 

“Modeling taught me the importance of maintaining physical fitness and overall well-being,” she says. 

When she wasn’t modeling, she was running with her Border Collie, or training at top fitness studios. Topp loved taking boxing, Pilates, yoga, and barre classes. She even got certified to teach Barre Body. 

Finding a New Calling

Combining her passion for health with her passion for digital marketing, Topp started using her own social platforms to tout her favorite brands, including  Orangetheory Fitness and F45 Training. As an influencer and brand ambassador herself, Topp has always had a pulse on digital trends.

“When the pandemic disrupted the modeling industry, I experienced a downturn in my career, which prompted me to embark on the journey of founding Ekhos,” she says. 

The sudden travel limitations and restrictions forced Topp to stop and think about what to do next. While she didn’t necessarily know she would one day become an entrepreneur, she has always had a strong work ethic and drive, with a keen understanding that running a business takes resilience and determination. 

“To be completely candid, starting a company is not about following a predetermined formula; it’s about diving in headfirst, being willing to put in long hours, and learning as you go.”

A Finger on the Industry Pulse

Topp took a unique approach to starting her business. 

“My transition into entrepreneurship wasn’t driven by noticing gaps in existing agencies, but rather by seeing opportunities presented through networking,” she explains.

Topp is already a consumer of the products and facilities she works with, which has helped her feel extra connected to the customer experience. She explains that other agencies lack comprehensive competitor insights and the emotional experiences of actual studio goers. 

“Digital marketing in the health and wellness realm goes beyond traditional tactics, focusing on fostering emotional connections, building communities, motivating individuals, and crafting sales strategies tailored to specific audiences,” she says. ” Understanding these differences is essential for effectively connecting with customers online.”

Today, Ekhos is a full-service marketing agency working with brands across Europe, South Africa and the U.S. At its core, Ekhos offers services including social media campaign management, email marketing, automation marketing, web design and search.  The agency has developed marketing strategies for brands including Power Plate, Shred415, Vibez Fit and fourfive. Since founding her business, each week has brought its own set of hurdles and challenges.

“Ekhos is like my real-life baby right now,” Topp says. “It’s unpredictable, keeps me on my toes, keeps me up at night, always demanding attention, but the love I have for it is boundless and unconditional.” 

Leadership Learnings

When people ask Topp what it’s like to be a female entrepreneur, she says that it is indeed a superpower. 

“I would encourage all fellow female entrepreneurs to prioritize supporting each other rather than tearing each other down, because together, we form an incredibly strong force,” she says.

As any business founder can attest, there’s a learning curve in finding a balance between wanting to have a hand on every single project while learning how to relinquish a little bit of control. The key is having an exceptional team; Topp can delegate successfully and is proud of her ability to do so. 

Leadership has presented its own set of challenges, particularly in learning the fine line between being authoritative and fostering strong relationships. As a result, Topp spends time on improving her leadership skills. She does this through transparent and open communication.  

“When everyone feels comfortable expressing themselves honestly, it fosters a positive atmosphere that boosts both happiness and productivity in the workplace,” she says. 

For entrepreneurs just starting out, Topp says, “You’ve got to remember to take care of yourself and put yourself first sometimes.” She explains that if you’re not feeling good, it’s impossible to keep everything else in check. 

“I’m guilty of always looking out for everyone else and forgetting to give myself some love and attention,” she says.

Last month, Topp helped Athletech News and other fitness and wellness industry executives ring the opening bell at the Nasdaq. She never imagined she would be on a billboard in Times Square being honored for the work she does. For Topp, it was a true moment of reflection on how far she has come. 

As for the future? Topp hopes to continue partnering with more wellness brands to grow Ekhos’ current portfolio of clients. She will also continue prioritizing going on long runs with her Border Collie and hanging out with friends and family who energize her. 

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Xponential Fitness, the boutique fitness and wellness franchisor overseeing ten brands, opened an average of one and a half new studios each day in 2023 — a feat founder and CEO Anthony Geisler said can continue this year on Thursday’s earnings call with investors.

The leading health and wellness franchisor grew its full-year 2023 revenue by 30% to $318.7 million and grew its Q4 2023 revenue by 27% to $90.2 million, reporting strong growth despite a net loss of $9.1 million in Q4, resulting from restructuring costs from company-owned transition studios, lower overall profitability and an increase in impairment of goodwill and other assets.

“In 2023, we experienced substantial growth on both the top and bottom lines as members continued to demonstrate that they prioritize their health and wellness routines,” Geisler said. “We further streamlined our business and are operating from a position of strength as we leverage our operations.”

Xponential also increased its North America system-wide sales by 36% to $1.40 billion, sold 805 franchise licenses and opened 557 new studios in 2023. Total members in North America grew 21% year-over-year in 2023 to 717,000, while visitation rates increased 31% to 51.5 million studio visits last year. 

“We see this momentum carrying into 2024 and are confident that our optimized portfolio of global brands will deliver considerable margin expansion and operational cash flows.”

Looking ahead to full year 2024, Xponential expects 550 new studio openings and an 8% growth in revenue. 

The Lindora Effect

Lindora, Xponential’s most recent acquisition that signals its push into the GLP-1 and wellness space, took center stage on Thursday’s earnings call.

Based on preliminary findings, Geisler noted that the company sees the greatest similarities between Lindora member profiles and those of Club Pilates and StretchLab, alluding to two of Xponential’s most popular and successful brands. He also indicated that apparel may be added to Lindora’s retail mix and sees the metabolic health brand as a lucrative addition. 

“Given that the average member in Lindora spends more than the average member in our fitness brands, there’s … more wallet share there than the fitness product,” Geisler said. “People that have shown up at Lindora have tried typically some version of weight loss, whether that be diet and exercise or both in the past and so when they come to Lindora, they’re willing to spend whatever they need to spend to get the ultimate result.”

Earlier this month, Xponential sold its treadmill-based interval fitness brand Stride Fitness, which represented less than 1% of its total studios open at the close of 2023.

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Orangetheory Fitness is merging with Self Esteem Brands, the parent company of Anytime Fitness, in an all-stock transaction, the sides announced Thursday. 

The “merger-of-equals” deal represents one of the biggest fitness industry consolidations in recent memory as Orangetheory, a highly popular boutique fitness brand, joins forces with Anytime Fitness, a big-box gym powerhouse with a presence across the globe.

The new, combined company will represent $3.5 billion in systemwide sales and around 7,000 franchise locations across 50 countries and territories spanning seven continents, the sides said. 

“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, co-founder of Anytime Fitness and CEO of Self Esteem Brands.

“With this merger, we will enrich even more people around the world through franchising, community and the services they need – now and in the future – on their personal health and wellness journeys,” Runyon added.

Self Esteem Brands recently reported strong revenue growth and franchise sales for its 2023 fiscal year, led by Anytime Fitness, which counts over 5,000 global gym locations. SEB’s portfolio also includes boutique brands like Waxing the City, The Bar Method, Basecamp Fitness and Summit Fitness. 

For its part, Orangetheory has continued to expand nationwide and overseas, amassing over 1,500 franchised studios with a presence in all 50 states and 24 countries. The fitness franchise, which offers heart-rated-based group workouts spanning cardio and strength training, has become a cult favorite among boutique fitness enthusiasts. 

Both Orangetheory and Self Esteem Brands touted the deal’s ability to lead to “significant international scale” for their brands. Orangetheory recently announced significant expansion plans in London, while Self Esteem Brands is bringing Anytime Fitness locations to France and Austria.

“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, co-founder and CEO of Orangetheory. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness.

No timeline was given for when the merger is expected to close.

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Humble Growth, a consumer-focused investment firm concentrating on disruptive wellness brands in the food, beverage, health, beauty, vitamins, supplements and apparel space, has acquired a significant minority stake in Momentous, a fast-growing human performance and nutrition company. The deal is worth $32 million, Athletech News has learned.

The strategic partnership sees Momentous co-founders Jeff Byers and Erica Good continuing to lead the company together as CEO and president, respectively. Last year, the Park City, Utah-based brand tripled its revenue from 2022 and projects to double its revenue again this year. 

Next up, Momentous plans to open a new Los Angeles-based headquarters, grow its staff and advance the customer experience of its DTC model.

The human performance brand recently released an updated version of its website, allowing consumers to explore products based on their desired “pillar of performance” — such as cognitive function, sleep, athletic performance, foundational health and hormone support.

The timing is ideal, as Americans are eagerly spending hard-earned dollars on vitamins and supplements, especially those in the performance, recovery and mood genres.

NY-based Humble Growth, led by RxBar co-founder Peter Rahal, debuted a $312 million fund last fall, with a who’s who list of investors including Nestlé Health Science, Verlinvest, BodyArmor co-founder Mike Repole, Stonyfield Farm founder and CEO Gary Hirshberg, IT Cosmetics co-founder Paulo Lima and Ainsworth Pet Nutrition founder Sean Lang.

Not Your Traditional Supplement Brand

Aligned with Humble Growth’s mission to partner with entrepreneurs and brands promoting health and wellness, Momentous was launched in 2018 to offer high-quality, science-backed products (seven of which tout the Informed-Sport certification) to meet the needs of elite performers.

Human performance is an area that Byers knows well as a former NFL offensive lineman. After retiring from the NFL, the Momentous CEO became aware of a major gap in the supplement space. He first launched Amp Human, creating the brand’s popular PR Lotion product before acquiring the Momentous brand in 2021 and merging it into the company.

Instead of marketing gimmicks, Byers’ approach to supplements is to rewrite the current industry script with an expert approach, tapping the talent of Dr. Andrew Huberman, Dr. Andy Galpin and other health and wellness practitioners. 

“Supplements to me have a weird connotation, so our goal is to build the ‘anti-supplement supplement company,'” he told ATN in an exclusive interview last year. “We want to be your trusted partner in life optimization.”

As part of being a trusted partner, Momentous is listening — and delivering. With its finger on the pulse of consumer desires, the company will launch a pre-workout later this year that has been in development for years and includes Department of Defense research funding.

“Our goal was to develop a pre-workout formula that delivers cognitive and physical performance benefits but without synthetic sources of caffeine or stimulants, and we’re excited to bring this product to our customers who have been asking for it,” Byers said.

The brand also plans to introduce additional products that are geared toward the needs of women.

From the NFL to Consumers

Passionate about targeting “mindset” consumers who seek quality products to optimize their health and performance, Byers’ position has led Momentous to secure nearly 200 pro and college sports teams partnerships, including a deal to create a custom recovery product for an NFL team, along with millions worth of innovation contracts with the Department of Defense.

The brand has also attracted pro athlete shareholders such as NFL Pro Bowlers Luke Kuechly, Kyle Rudolph, and Ndamukong Suh, former professional skateboarder Rob Dyrdek, Ironman Champion Lucy Charles-Barclay and more. 

Byers remarked that joining with Humble Growth on the heels of exponentially growing Momentous will mean an upward trajectory for the brand, which has also earned the title of Official Supplements and Sports Nutrition Partner of CrossFit and the CrossFit Games.

“We were immediately drawn to Humble Growth and its partners’ exceptional track record in successfully operating and scaling nutrition and supplement companies,” Byers said. “Their lived experience positions them as invaluable thought partners during our continued growth, and I’m confident that Humble Growth’s passion and expertise for consumer products in this space is going to usher us into an exciting new chapter.”

This article has been updated.

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Anytime Fitness owner Self Esteem Brands (SEB), a portfolio of fitness and personal care franchises, has closed out a solid 2023 with system-wide revenues up 12.3% compared to 2022. Combined franchise sales also grew by more than 500 units, which included 284 new non-U.S. locations.

The Minnesota-based company’s portfolio includes Basecamp Fitness, Sumhiit Fitness, The Bar Method and Waxing the City. 

“Franchising is a proven model that empowers franchisees to be in business for themselves – but not by themselves – and receive the ongoing support from the franchisor,” said Dave Mortensen, president at Self Esteem Brands. “We are encouraged by the 2023 growth across our portfolio of brands and system and see strong gains to be made both in the U.S. and in new countries and regions worldwide.”

Apple’s Favorite Fitness Brand

Anytime Fitness, the rockstar brand of the SEB portfolio, inked a deal last fall with Apple Fitness+ so its U.S. and Canada-based members can access an Apple Fitness+ subscription as part of their membership.

Not only does the partnership with the tech giant support Anytime Fitness members, it also gives the fitness brand bragging rights for landing the first-ever collaboration Apple has had with a gym or health club. The fitness franchise has grown to over 5,000 locations and in 2023, saw a 6.7% year-over-year increase in coaching and personal training services. 

International Expansion & More

Basecamp Fitness, a high-intensity interval training (HIIT) studio concept, is in “growth mode,” and plans to expand globally this year with its signature brand in the U.S. and the Sumhiit Fitness brand overseas. Self Esteem Brands recently introduced the intense 35-minute interval training concept Sumhiit Fitness to Sydney, Australia, and will soon open two locations in Singapore.

Continuing on the international front, Anytime Fitness made headway in France and Austria, signing master franchise agreements in those countries.

The Bar Method, SEB’s barre brand, grew to 1.6 million class attendees last year, 14% higher than in 2022, and will announce its international franchise expansion in Q1 of this year. 

As the company makes further advances in 2024, Stacy Anderson, Anytime Fitness global brand president, indicated that more is in the pipeline as SEB continues to stay ahead of the fitness and wellness trends. 

“We’re working on training programming that’s expanded to different populations. We’re working on recovery programming. We’re even getting into the mental health side of things, knowing that so much of your health has to do with your headspace and where you’re at there,” Anderson said. “I think as we go forward, you’re going to see a lot more partnerships.”

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Shares of Life Time are surging in response to strong fourth quarter and full-year fiscal 2023 results, demonstrating that its member-rich amenities and services are a hit with wellness seekers — so much so that there are membership waitlists at over 20 Life Time clubs, with additional clubs expected to have waitlists by May. 

The luxury fitness and lifestyle operator reported its total revenue increased 18.2% to $558.8 million for the fourth quarter and 21.6% to $2.217 billion for the year, crediting its continued strong growth in membership dues and in-center revenue. Net income also increased to $23.7 million for the fourth quarter and $76.1 million for the year. 

“I am thrilled to report that we achieved our operating and strategic objectives and exceeded our financial goals in 2023,” said Bahram Akradi, Life Time founder, chairman and CEO. “We set record levels of revenue and adjusted EBITDA, improved our balance sheet and further reduced our net debt leverage ratio.”

Akradi emphasized that Life Time expects to be free cash flow positive beginning in the second quarter and plans to open nine to ten new centers in 2024. The fitness operator opened its eighth facility in New Jersey this week.

“We also increased member engagement through our strategic programming initiatives, as highlighted by the increase to 135 average visits per membership compared to 124 in 2022 and, most notably, 108 in 2019 before the pandemic. The increase is a clear indication that our members are more engaged, with higher retention as a key outcome,” Akradi said,

Following Wednesday morning’s earnings call, shares of Life Time shot up over 11% as of Wednesday afternoon.

Resilient & In-Demand

Establishing waitlists for busy Life Time clubs creates a two-fold benefit, noted Akradi: maintaining the brand’s member experience and improving member retention.

“We expect to realize the highest retention rates in the history of Life Time in 2024,” he told investors, adding that, like most high-end leisure brands, the club doesn’t see any weaknesses in traffic.

By comparison, Placer.ai recently reported that traffic to ten leading fitness operators fell flat last month, typically when gyms are bustling with New Year ‘Fitness Resolutioners.’ 

“Right now, we see no reason to suggest the positive trend we’re experiencing today should change going forward,” Akradi added.

Life Time will also continue to invest in programming such as pickleball and small group classes.

Bullish on GLP-1s

Life Time isn’t experiencing any pain from the weight loss medication surge, with Akradi noting that Miora, the brand’s medical wellness and longevity clinic launched last fall, is a “huge opportunity” for the luxury lifestyle operator. The clinic offers popular, non-invasive wellness therapies such as infrared saunas, red light therapy, peptides, hormone replacement therapy, IV therapy, cryotherapy chambers and even GLP-1 weight loss drugs.

“We have exactly the right customer base in our clubs,” he said. “This is going to remain a megatrend. It’s going to stay, and it’s not a negative for exercise because you absolutely need to combine the proper weight training and nutrition with these drugs. The exercise business is going to get a win out of it.”

Further, Akradi points out that weight loss customers spending $500 – $1000 a month on drugs like Ozempic and Wegovy will want the proper facilities, professional personal trainers and nutritionists to support their health investment. He also sees those who have lost weight becoming more comfortable attending Life Time clubs. 

“Lifetime is uniquely positioned because, in every market, we have facilities where we can launch Miora Clinics for longevity, for addressing weight loss, peptides, all of that,” he said. “We look at this as nothing but an upside.”

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Biotech company GlycanAge, which specializes in the science of biological aging, has completed a $4.2 million seed funding round led by Kadmos Capital and LauncHub Ventures, marking yet another win for the longevity and disease prevention space despite a decline in VC funding in recent years. 

While the U.K.-based startup acknowledges that aging is inevitable, GlycanAge believes arming consumers with their biological age can empower them to make impactful, health-supporting changes if needed — and has reportedly attracted Halle Berry as a customer. 

Backed by 20 years of research, the biotech company tests biological age and wellness by analyzing 27 glycans to determine health and vitality, assessing preventative biomarkers that can be modified over time with improved behavior. 

GlycanAge customers select a plan and payment option: one kit for $348 measures current biological age and includes a consultation; two tests and two consultations are $599 and measure progress towards slowing aging. A custom plan is also available based on the testing frequency and additional support. 

Once the test kit arrives, a simple finger prick test unlocks results in 3-5 weeks, which are sent via email. Customers can then book a free video consultation with a Care Team Specialist to go over the finer details of their lifestyle and areas of concern. 

“GlycanAge’s vision lies at the crossroads between preventive medicine, longevity and diagnostics,” said John Gebeily, partner at Kadmos Capital.

Although the startup initially received grant funding to develop the baseline of its technology, CEO Nikolina Lauc told “Business Live with Ian King” that GlycanAge is now ready to commercialize. The funding will go towards developing a regulatory path over the next year as it pushes into the diagnostic sector.

Given GlycanAge’s capabilities, Lauc sees the massive potential to predict and prevent diseases with helpful interventions. 

“We’re hoping that insurance companies will use this to give you a way ahead and then give you rewards as you improve lifestyle or behavior that would then reduce your risks,” she continued. 

Health Tech Leads the Longevity Charge 

Like GlycanAge, Ezra, a full-body, AI-powered medical imaging company specializing in early cancer screenings, has also attracted investors for its prevention and detection services, fueling the longevity space. The New York-based healthcare startup recently raised $21 million in new capital, bringing its total funding to $41 million. Ezra’s new funding will help it expand to 20 cities and 50 locations across North America this year.

Movement, sleep and a diet rich in vitamins and nutrients may be the building blocks for longevity, but rapid innovation in health tech, such as GlycanAge, is resulting in ways to increase healthspan. 

Fueling the longevity trend? A healthcare system that has failed us, according to the Global Wellness Summit (GWS). Startups in biotech can offer a proactive approach, which GWS notes is at the core of longevity — with the global proactive services market expected to grow from $4 billion to $20 billion through 2032, with healthcare innovations leading the way.

Jeff Bezos is also reportedly backing the longevity space with Altos Labs, which focuses on cell rejuvenation to combat disease. Similarly, NewLimit raised $40 million last year for its work in epigenetically reprogramming cells to turn back the clock.

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Gymshark may have experienced slumping profits in 2023 but is focusing on its increased sales, as the popular U.K.-based activewear brand has made big plans to expand its presence through retail and debut a new premium line. 

The activewear brand reported revenue was up 15% to £556.2 ($709 million), according to a recent filing reviewing the fiscal year ending July 31, 2023. However, it reported profit before tax was £13.1 million ($16.5 million), down from £27.8 million ($35.3 million) in the previous year.

Despite facing the pains of rising raw material, labor costs and cost of living increases affecting consumer spending, Gymshark maintains that it has continued to grow. In contrast, activewear giants such as Athleta and Under Armour have reported dwindling sales.

“I thought I’d jump on here and give you the numbers myself, but also take the opportunity to tell you about some of the moments that are going to make 2024 Gymshark’s BIGGEST. YEAR.EVER.,” posted Gymshark CEO and founder Ben Francis on LinkedIn. He included a video where he outlined key performance details from Gymshark’s 2023 financial results, reflected on the brand’s biggest Black Friday and single-day sales that the brand has seen and shared what’s in store for 2024.

Gymshark’s flagship store on London’s Regent Street experienced sales ahead of expectations, according to the filing. More than just merchandise, the experiential location offers special events, community gatherings and workout spaces. The concept has been such a hit that Gymshark has announced a second retail location in London’s Westfield Stratford City, which boasts over 44 million visitors annually. 

Gymshark Goes High-End, Eyes NYC

As for its product offerings, 2024 will see Gymshark launching its “highest quality athleisure range yet,” according to Francis, adding that the new high-end line, ‘Everywear,’ is born from repeated requests from the Gymshark community for an even more premium product. 

“So we listened,” Francis said, “And I personally have been really involved in the development of this range, and I cannot wait for you to touch and feel this product.”

The new line will launch exclusively in the U.K.’s upscale department store, Selfridges.

“We had to launch it somewhere iconic,” Francis said of the famed retailer, adding that the move also marks Gymshark’s first foray into wholesale. 

Gymshark will also open a pop-up store in New York with a 12-month run, which Francis teased will be in the heart of Manhattan. As for its e-commerce division, the brand plans to become available in the Dubai region this spring and the wider Middle Eastern area. 

Lifting Roots

The activewear brand also plans to continue leaning into in-person experiences, heading to Miami for a huge upcoming event, #LiftMiami, on February 24 and 25.

As the U.K.’s youngest billionaire, Francis has made a fortune with Gymshark, harnessing the power of Instagram, TikTok and fitness influencers who would sport Gymshark apparel in exchange for a small payment. In a garage-to-riches story that landed Gymshark the coveted unicorn status in 2020, the entrepreneur has dodged IPO talk, telling Retail Gazette in 2022 that the brand had plenty on its plate and that it was looking to “smash the U.S. market.” 

At the start of last year, the activewear brand laid off 65 stateside employees in Colorado in an attempt to centralize locations and safeguard the future of its business. By fall, Gymshark tapped Google Cloud and generative AI to power its next growth phase, contextualizing transactional data from purchases versus activities from its fitness training app to provide product suggestions to customers.

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Planet Fitness, inching closer to 20 million members and now with 2,575 store locations, reported that total revenue increased from the prior-year period by 1.4% to $285.1 million in its fourth quarter, and for fiscal 2023, its total revenue increased from the prior year by 14.4% to $1.1 billion.

In addition to its fourth quarter and 2023 earnings, Tom Fitzgerald, chief financial officer, has announced his intention to retire at the end of August. 

Providing its 2024 outlook, Planet Fitness expects revenue to increase in the 6%-7% range when compared to 2023, new equipment placement of approximately 120-130 in franchisee-owned locations and system-wide same-store sales in the 5% to 6% percentage range. 

Despite the strong numbers, Planet Fitness shares were down 3% on Thursday morning shortly after the earnings announcement.

The fitness franchisor and operator had kicked off a “New Growth Model” last year to support long-term store growth in the face of post-pandemic macroeconomic challenges, which interim CEO Craig Benson noted reduces capital requirements for owning and maintaining a PF franchise location with additional flexibility to build store portfolios. 

“While we believe that 2024 will be a transition year as our franchisees incorporate the changes into their growth plans, given our consistent and predictable asset-light model, we believe that we can deliver between 10 and 11 percent adjusted EBITDA growth, enabling us to generate significant cash flow to invest in the business and return capital to shareholders via our share repurchase program,” Benson said

“Importantly, we are expanding our total store opportunity to 5,000 in the U.S. based on the results of our recently completed third-party studies, up from the 4,000 total store opportunity we communicated at the time of our initial public offering in 2015,” he added.

Inside the Numbers

In the fourth quarter,  77 new Planet Fitness stores were opened and the fitness operator reported net income of $36.8 million, compared to $36.3 million in the prior-year period. Franchise segment revenue also increased $12.0 million or 13.9% to $98.2 million from $86.3 million in the prior-year period.

For fiscal year 2023, Planet Fitness reported net income was $147.0 million, compared to $110.5 million in the prior year. The fitness brand opened 165 new stores during the year. As for franchise segment revenue, Planet Fitness reports it increased $58.3 million or 17.7% to $387.9 million from $329.6 million in the prior-year period. 

Former CEO Departs Board

Benson has served as interim CEO following the sudden departure of former CEO Chris Rondeau last fall.

Rondeau recently resigned from the company’s board of directors, according to an SEC filing dated February 15. In part, it read that Rondeau didn’t serve on any board committees at the time of his resignation and that the company believes he resigned from the board due to “disagreements” with the company since his separation as CEO — such as the decision to terminate roughly 9% of PF headquarters-based employees this month, Benson’s role in managing Planet Fitness during its search for a permanent CEO and the board’s role in reviewing and approving decisions. 

In response, Planet Fitness wrote that it “respectfully disagrees with Mr. Rondeau’s views on these matters” and noted, “The board has momentum behind the search for a new CEO, and the board is encouraged by the progress to date.”

Last month, Planet Fitness launched a media network for advertisers to target its 18.5 million members, many of whom are Gen Z.

This story has been updated as Planet Fitness issued revised guidance regarding its same-store sales numbers.

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BowFlex is casting “substantial doubt” on its ability to continue operations and is considering filing for bankruptcy, according to a recent quarterly filing. The grim outlook follows a company-wide rebrand last fall that saw Nautilus switch its corporate name BowFlex.

In an SEC filing on February 21, the Vancouver, Washington-based fitness equipment maker cites a challenging retail operating environment, “deteriorating macroeconomic conditions” and a decline in customer demand, resulting in a “significant year-over-year decline” in revenue for the three and nine months ended December 31, 2023. 

BowFlex said it believes “conditions will not improve in the next several quarters,” negatively affecting its liquidity projections. The equipment maker painted a dire picture:

“We have been actively pursuing alternatives to access liquidity or sell the Company or its assets, which may include making a voluntary filing under federal bankruptcy laws,” BowFlex reported. “If we are not able to promptly consummate a transaction or access additional sources of liquidity, we will not be able to maintain compliance with debt covenants in our credit facilities and may not be able to continue to operate our business.”

“Management has determined that under these circumstances, there is substantial doubt about our ability to continue as a going concern for twelve months from the issuance date of this report,” the company added.

BowFlex reports that for the three and nine months ended December 31, 2023, it incurred a net loss of $34.3 million and $51.8 million, respectively, and for the three and nine months ended December 31, 2022, it incurred a net loss of $11.1 million and $84.5 million, respectively. 

Despite its rebrand, which included a colorful marketing campaign and the release of new home-fitness products, BowFlex has continued to struggle. 

The fitness equipment maker received its second notice from the New York Stock Exchange at the close of last year, warning that it wasn’t in compliance with continued listing standards amid its financial issues.

Despite rallying around its “North Star” strategy since 2021 under CEO Jim Barr, the company previously discussed a potential sale and also conducted layoffs, affecting 15% of its staff, in early 2023.

The equipment maker had announced in May that it would sell $13 million in non-core assets, including the Nautilus brand trademark, to boost its balance sheet in response to lackluster net sales. In June, BowFlex, then operating as Nautilus, sold over four million shares of its common stock or equivalents to an institutional investor to raise $5 million for general corporate purposes. 

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