TRX, the maker of functional training products and training content, has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division in order to pursue a sale.
The company, based in San Francisco, will continue to operate in the ordinary course of business, fulfilling its commitments to employees, customers, vendors, and other partners.
Since its founding in 2004, TRX is known for its patented, flagship product, the Suspension Trainer. TRX also offers education and training solutions. To meet the demand for virtual and hybrid training solutions, the company, in 2021, launched a digital subscription-based platform, the TRX Training Club, combining programming and training through live and -on-demand video classes.
Over the past year, the company has invested in, streamlined, and enhanced its e-commerce platform and added management to support growth.
TRX said in a press release, “While the company achieved a record-breaking year in 2020 because of the rapid growth experienced with the COVID-19 home fitness boom, today’s action addresses the headwinds facing the business such as increased competition and macroeconomic challenges being faced by many other companies. This process will allow TRX to substantially reduce its debt and more rapidly adjust to post-pandemic consumer demands.”
TRX said it intends to move through this process quickly, emerging with a new partner, a healthy balance sheet and strong operations.
The sale transaction will be executed through an open, court-supervised process to maximize value for all stakeholders. TRX expects that the deadline to submit qualified binding bids will be set at a later date pursuant to bidding and sale procedures to be approved by the Court.
Court filings and other information related to the restructuring are available here.
Photo courtesy TRX
