Over the past several months, iFIT — the maker of NordicTrack — has suffered a string of financial blows.
Following a capital raise, the company’s valuation dropped about 60% — meaning iFIT is now worth less than $3 billion, according to Bloomberg.
- The fitness company received $355 million in equity and debt.
- Investor L Catterton led the round.
But despite recent setbacks, its ailing balance sheet might be on the road to recovery.
The capital raise will reportedly keep the company from an even more severe round of layoffs than the restructuring plan announced last week — which also included CEO Scott Watterson stepping away, remaining only as board chairman.
In October 2020, iFIT was worth about $7 billion. The company’s luck arguably began to sour when its IPO — which could have brought in well over a half-billion dollars — was postponed in October 2021.
In January, the company was reportedly almost sunk by a lawsuit filed by one of its own lenders. The lawsuit has been resolved “amicably,” Bloomberg reported.
Now, revenue for the fiscal year could rebound and generate about $1.7 billion, close to the same amount as last year, per Bloomberg.