The CEO of NordicTrack-owner iFIT is being pushed out after investors insisted on a new direction, according to a New York Post report.
The company secured a $355 million funding round in February, including $325 million from Pathlight and $25 million from L Catterton, but it came with strings attached. L Catterton and Pathlight Capital wanted CEO Scott Watterson to be replaced.
Watterson, who has three sons with executive roles at the company, also invested $5 million during the recent funding round. iFIT forgave $53.2 million in loans from Watterson’s family members who were employed by the company shortly before filing for an IPO.
- iFIT once had a valuation north of $10 billion.
- With demand drying up the company’s value is now reportedly around $1.5 billion.
- A $300 million lawsuit by iFIT lender Pamplona Capital Management threatened to push the company into bankruptcy.
iFIT took on hefty expenses to compete with Peloton, including tapping Olympic swimming legend Michael Phelps for a marketing campaign.
The company had planned to pay for these moves by raising $646 million in an IPO but postponed those plans in October, citing rocky market conditions.
Peloton filed lawsuits against iFIT and Echelon in November, claiming patent infringement related to its on-demand class technology.