TRX, Orange County, California, filed for Chapter 11 in the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division and will seek a buyer, according to a June 8 announcement from the company.
The sale transaction will be executed through an open, court-supervised process designed to maximize value for all stakeholders, the announcement shared. TRX expects that the deadline to submit qualified binding bids will be established at a later date pursuant to bidding and sale procedures to be approved by the court.
The functional training products company will continue to operate as it undergoes the restructuring. Its flagship product is the Suspension Trainer.
The Chapter 11 filing showed that TRX had no more than $50 million in listed assets and no more than $50 million in liabilities.
Founded in 2004, TRX had a record-breaking year in 2020 because of the rapid growth experienced with the COVID-19 home fitness boom, according to the media release. However, increased competition and macroeconomic challenges caused the Chapter 11, which the company said would address “the headwinds facing the business.”
In 2021, TRX launched TRX Training Club, a purpose-built digital subscription-based platform that combines programming and training through live and on-demand video classes. During the past year, the company has invested in, streamlined and enhanced its eCommerce platform and added experienced management with the depth and skills to lead the company in its efforts to execute across consumer, commercial and digital channels, according to TRX.
The restructuring will allow TRX to reduce its debt and more rapidly adjust to post-pandemic consumer demands, according to the announcement.
Plans are to move through the process as quickly and efficiently as possible, emerging with a new partner, a healthy balance sheet, and strong operations for the benefit of all TRX employees, customers, vendors, and other partners, according to the announcement.