TRX Implements Value-Maximizing Sales Process with Comprehensive Financial Restructuring

Company continues ongoing operations while strengthening its balance to achieve long-term strategic goals

ORANGE COUNTY, Calif. and LOS ANGELES and SAN FRANCISCO , June 8, 2022 /PRNewswire/ -- TRX®, the global leader in functional training products and world-class training content, today announced that it has initiated a process to identify a new strategic partner to support the Company in executing its future growth strategy.    

To facilitate the sale, TRX has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division. The Company will continue to operate in the ordinary course of business, fulfilling its commitments to employees, customers, and vendors and other partners.

Since its founding in 2004, TRX has become a globally respected brand and has evolved into a digitally enabled, vertically, omni-channel fitness lifestyle brand powered by a vast community of consumers and fitness trainers. The Company's patented, flagship product, the Suspension Trainer tm, offers a unique functional training solution to the fitness world with millions of users and growing.

TRX has led the functional training market and defined its own category ? Suspension Training® - through a combination of a high-quality hero product and education and training solutions that enable people to move better. To meet demand for virtual and hybrid training solutions, the Company in 2021 launched a purpose-built digital subscription-based platform?the TRX Training Club®--combining programming and training through live and -on-demand video classes to deliver a holistic and unique fitness experience. Moreover, over 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.

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.

The Company intends to move through this 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.

The sale transaction will be executed through an open, court-supervised process designed to maximize value for all stakeholders. 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. Interested parties should contact Jim Feltman of Kroll at [email protected].

Court filings as well as other information related to the restructuring are available at https://www.cacb.uscourts.gov or can be obtained by Company counsel by contacting Ron Bender of Levene, Neale, Bender, Yoo & Golubchik L.L.P. at [email protected].

The Company is being advised by the law firm of Levene, Neale, Bender, Yoo & Golubchik L.L.P. and Kroll Securities as Chief Restructuring Officer and Financial Advisor.

Founded in 2004, TRX® was built on the revolutionary idea that fitness can be achieved with one radically simple design?Suspension Training®, the iconic black and yellow straps found in gyms across the globe that power your training with bodyweight-based movements and exercises. Today, TRX is the leader in functional training solutions for both consumers and professionals, offering a complete line of highly effective, versatile and portable fitness equipment for unparalleled full body workouts that can be performed at home, at the gym, or on the road. With the recent launch of TRX Training Club®, the company is now omnichannel and offers digital content, ranging from daily live classes to on-demand workouts, all led by world-class trainers. A top-tier professional education destination, TRX has certified over 250,000 trainers and is trusted by pro athletes, pro trainers, and physical therapists, with a loyal community of millions of fitness enthusiasts across the world. With offices in California, the U.K. and Japan, as well as sales in more than 30 countries, TRX has truly become a worldwide fitness phenomenon. For more details, go to www.trxtraining.com

Media Contacts: 
Paladin for TRX 
Jennifer E. Mercer 
[email protected] 
or 
Liz Gonzalez  
[email protected]

SOURCE TRX®