TRX, the maker of functional training products and training content, has voluntarily filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, in order to pursue a sale.
The San Francisco-based company will continue to operate in the normal course of business, meeting its commitments to its employees, customers, suppliers and other partners.
Since its inception in 2004, TRX has been 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, in 2021 the company launched a subscription-based digital platform, the TRX Training Club, combining programming and training through live and on-demand video courses.
Over the past year, the company has invested, streamlined and improved its e-commerce platform and added management to support growth.
TRX said in a press release, “While the company delivered a banner year in 2020 due to rapid growth with the COVID-19 home fitness boom, today’s stock responds to the winds. adversaries faced by the company, such as increased competition and macroeconomic challenges being faced by many other companies. This process will allow TRX to significantly reduce its debt and adapt more quickly 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 the deadline for submission of qualified binding offers to be set at a later date in accordance with bidding and sale procedures to be approved by the Court.
Court documents and other information relating to the restructuring are available here.
Photo courtesy TRX