Exercise equipment company Nautilus said Tuesday that it had sold rights to the Nautilus brand. It’s an extreme measure meant to shore up the Vancouver, Wash., company’s cash position.
Nautilus said it used the $13 million it received from selling the Nautilus name and other “non-core assets” to advance an ongoing effort to shore up its balance sheet and pay down its debts. Nautilus laid off 15% of its staff in February, approximately 80 jobs.
The company said it now has $19 million in cash and $18 million in loans. At the end of last year, Nautilus had just $16 million in cash and $61 million in debt.
Nautilus’ sales soared during the pandemic as gyms closed and people rushed to buy home exercise equipment, purchases often funded by federal stimulus dollars. As gyms reopened, though, and the federal spigot shut off, Nautilus and other companies that thrived during the stay-at-home era have struggled.
Nautilus said Tuesday its sales fell by more than half last year, from $589.5 million to $286.8 million. The company said it lost $107.5 million last year, compared to a loss of $22.2 million the prior year. Nautilus last reported an annual profit in 2020, when it recorded net income of $59.8 million.
With its market position and finances eroding, Nautilus announced last September that it was reviewing “strategic alternatives” for the business, including a possible sale. Nautilus said Tuesday that its strategic review is continuing.
It wasn’t immediately clear whether Nautilus plans to change its corporate name, now that it no longer owns the rights to its own name. The companydidn’t immediately respond to an inquiry Tuesday.
Originally founded in 1986 as Bowflex, the fitness product company over the years acquired Nautilus, Schwinn and StairMaster before changing its name to the current Nautilus. It also owns JRNY.