provider of live connected fitness equipment

The Company was a $225M omnichannel, single-source provider of live connected fitness equipment across modalities and price points.

The Company sold products through Amazon, Costco, Walmart, direct-to-consumer (DTC), TV, and a proprietary commercial and dealership channel.  The Company built fitness studios and retail stores.

The Company also sold subscriptions to its proprietary fitness app, which offered live and on-demand classes, real-time workout stats, and history.

The Company operates in the US, UK, and Canada, with limited exposure to other international markets.

The Company still operates as a start-up consuming cash, increasing its installed base of products, and growing its subscription revenue business.

The Company was backed by two separate venture capital/private equity firms through Series A and Series B financing, with the second being a Blue-Chip Wall Street investor looking to quickly expand the business and capture market share during the COVID-19 pandemic.

The Company engaged FDP to review the 13-week cash flow forecast and financial model, as the Company had been missing revenue and cash burn projections for an extended period.

FDP assisted in reducing expenses and implementing a reduction-in-force (RIF) to align Company operations with new revenue levels and reduced expansion plans.

During the engagement, FDP assisted management in refinancing its debt with a non-bank lender and securing a $55M line of credit.

The Company experienced its second profitable and cashflow positive month at the end of the engagement.

FDP worked with management to negotiate an expanded borrowing base with the incumbent lender to a syndicated lender group that had varying visions on the resolution of the credit.

With the turnaround underway, FDP worked with management and equity owners to refinance the Company to a non-regulated private credit lender.