BowFlex Initiates Chapter 11 Proceedings, Secures Stalking Horse Bid From Johnson Health Tech
Portfolio Pulse from Benzinga Newsdesk
BowFlex Inc. (NYSE:BFX) has initiated Chapter 11 bankruptcy proceedings and entered into a purchase agreement with Johnson Health Tech Retail, Inc. as the stalking horse bidder for $37.5 million in cash. The company has also secured $25 million in debtor-in-possession financing to continue operations and fulfill customer orders during the sale process.
March 05, 2024 | 6:11 am
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BowFlex Inc. has filed for Chapter 11 bankruptcy and agreed to a purchase deal with Johnson Health Tech for $37.5 million, alongside securing $25 million in financing.
Filing for Chapter 11 bankruptcy generally has a negative impact on a company's stock price due to the uncertainty and financial distress it represents. However, securing debtor-in-possession financing and a stalking horse bid may mitigate some negative perceptions by showing a path forward for the company.
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