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BowFlex (NYSE:BFX) stock is a hot topic among traders on Wednesday after the home fitness and workout equipment company filed for Chapter 11 bankruptcy protection.
According to the company’s press release over the bankruptcy BowFlex already has a stalking horse bid agreement with Johnson Health Tech Retail to acquire all of its assets as part of the process. That would see it pay $37.5 million for the failed company’s assets.
BowFlex CEO Jim Barr said the following about the bankruptcy filing.
“As a result of the post-pandemic environment and persistent macroeconomic headwinds, we conducted a comprehensive strategic review and determined this was the best path forward for our Company. We are fortified by the potential partnership with Johnson Health Tech and encouraged by the multiple parties that have indicated an interest in bidding for our Company. Our goal is to maximize value for our stakeholders through this process.”
BowFlex also notes that it will continue normal operations throughout the bankruptcy process. The company has acquired $25 million in debtor-in-possession financing from Crystal Financial LLC for these continued operations.
What This Means for BFX Stock
The New York Stock Exchange suspended trading of BFX shares following the company’s bankruptcy filing. The exchange’s staff is also starting the process of delisting shares of BFX stock.
BowFlex can appeal this decision before the delisting goes through. However, the company hasn’t weighed in on the matter yet.
Investors looking for more of the most recent stock market stories are in luck!
We have all of the hottest stock market news for Wednesday! That includes why shares of Yatsen Holding (NYSE:YSG), JD.com (NASDAQ:JD) and Canoo (NASDAQ:GOEV) stock are on the move today. All of that info is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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