F45 Training, Austin, Texas, has made changes to its executive ranks, naming Tom Dowd as CEO and naming actor, producer and entrepreneur Mark Wahlberg as chief brand officer, the company announced on March 30.
Dowd and Wahlberg have partnered on various ventures during the past 12 years, including co-founding investment group MW/TD Inspired and active lifestyle nutrition company Performance Inspired Nutrition. The two are being tasked with accelerating the refinement of the company’s strategy to move the brand forward.
Ben Coates, who had been serving as interim CEO since F45 Training co-founder Adam Gilchrist stepped down from that role in July 2022, will continue to serve on the board of directors along with Wahlberg and Gilchrist as well as board chair Gene Davis and board members Elizabeth Josefsberg, Michael Raymond, Timothy Bernlohr, Lisa Gavales, Steven Scheiwe and Ray Wallander.
On March 19, F45 announced that it would delay its fourth quarter 2022 and full-year 2022 financial filing with the Securities and Exchange Commission, which is required of public companies.
In February, the company closed on a new $90 million subordinated debt facility to improve its balance sheet and drive the business forward. The funding was provided by a consortium of existing investors led by affiliates of Kennedy Lewis Management LP, which made an unsolicited bid in September to purchase F45.
When announcing the debt facility, F45 Training shared that it had paused a special committee formed by the company to review and evaluate the bid from affiliates of Kennedy Lewis. No new information was shared about the bid review when Club Industry reached out to F45.
In addition to his partnerships with Wahlberg, Dowd has 25 years of experience in a variety of executive roles at GNC Holdings, and he was one of the early investors in F45, which was founded in 2013.
“F45 is a game-changer in the fitness industry, and I couldn’t be more energized to be named CEO,” Dowd said. “The company is differentiated by its strong brand, dynamic and innovative programming, and a robust franchisee network – all of which I am confident will remain the cornerstones of our future success. I look forward to collaborating with the talented and passionate F45 team, as well as the board, to take the business and brand to the next level for the benefit of all of our stakeholders.”
Davis said that Dowd’s business experience makes him well suited to lead F45 into the future.
“We are delighted to bring Tom onboard to help further refine F45’s go-forward business strategy to deliver sustainable growth, enhance opportunities for our franchisees and team, and drive long-term value for shareholders,” Davis said.
F45 investor and brand ambassador Wahlberg, who has served on the F45 board since March 2019, has built multiple brands including restaurant chain Wahlburgers, Municipal Apparel and Unrealistic Ideas LLC. He also is co-owner of Chevrolet, Buick, GMC and RV dealerships in Ohio that bear his name.
Wahlberg will oversee the company’s branding strategy and explore initiatives to further elevate the F45 brand, including through additional partnerships and activations, enhancements to the studio look-and-feel and experience, and new, creative ways to harness brand ambassadors.
“Just like our incredible training community, F45 has been laser focused in recent months on getting stronger and stronger, and I am thrilled to help the company elevate its amazing brand and vision at this pivotal time,” Wahlberg said in the announcement. “I am confident in our ability to enhance what I believe is already the world’s best workout for studio operators and our more than 300,000 committed members across the globe.”
Davis said: “We are thrilled that Mark will be deepening his involvement with F45 and look forward to benefiting from his unique blend of business acumen and branding expertise. I am confident that under the leadership of Tom, Mark, and the rest of the management team, F45 will be poised to build on its strengths while evolving to unlock its full potential.”
F45 has experienced several issues since it went public in July 2021.
On July 26, 2022, Gilchrist stepped down as CEO but continued on the board, and the company laid off 110 employees, about 45 percent of its corporate staff, as part of a restructuring. It also downgraded its 2022 guidance, saying that two financing facilities that would have offered a $250 credit line for franchisees to expand would not be available, which would mean the company would open 60 percent fewer new locations than promised in its guidance two months prior.
The next day, the price of shares of F45 Training stock fell 60 percent, and the shares, which at the time of its initial public offering were trading around $16, have not traded above $4 since then.
As a result, several law firms announced they would bring class action lawsuits against F45 Training on behalf of shareholders.
F45 Training trades on the New York Stock Exchanges (NYSE) under FXLV. Shares closed at $1.22 on March 29.