💥BFX. PLCE.💥
BowFlex files in NJ (lol) with stalking horse; Children's Place's wild Feb ride.
💪Bankruptcy Flex? Part III.💪
On March 4, 2024, BowFlex Inc. ($BFX, f/k/a Nautilus) and BowFlex New Jersey LLC (“BFNJ,” and together with BFX, the “debtors”) filed chapter 11 bankruptcy cases in the District of New Jersey (Judge Altenburg Jr.) — a filing we predicted in prior coverage:
In our last piece (2/25/24), we concluded:
Will anyone care to spot this puppy?
Not likely. Not outside of bankruptcy, at least.
Bingo!
And so bankruptcy is now upon us and in the 🔥 bankruptcy party venue these days: New Jersey! Which is, uh — channeling Jon Stewart voice — a bit odd considering this is a Vancouver WA-based company. 🤔
Well, according to the BowFlex Inc. petition, “[a] bankruptcy case concerning debtor’s affiliate, general partner, or partnership is pending in this district.” Curious how that works! And convenient too. BowFlex just happens to have a random subsidiary, BFNJ, in the hottest bankruptcy filing district out there?
Well, ⚡️shocker⚡️, it’s not so random after all! BFNJ was incorporated on February 9, 2024, LOL.
YOU KNOW IT’S EASY TO LOOK THIS SH*T UP, RIGHT, GUYS?!? 🙄
Anyway, let’s brush aside the “affiliate” rule (🖕) and (manufactured) venue shmenue and focus on the case trajectory. And guess what? There is, indeed, a “spotter”!!
This is a rare recent bankruptcy sale case where there’s actually a stalking horse purchaser lined up for the debtors’ assets on the petition date.
Kudos to the Sidley Austin LLP (Michael Sabino, Matthew Clemente, Maegan Quejada, Amanda Rahie, Ian Ferrell, Jon Muenz) and FTI (Robert Del Genio, Shane Campbell) teams! Even Ken is impressed ⬇️:
Ok, screw it, in honor of this weekend’s Oscar festivities, we’re bringing this back:
How did they pull off this modern bankruptcy miracle? Let’s dig in.