1. Chinese Fitness Chain Space Shuts Down Amid Financial Troubles
High-end Chinese fitness chain Space has closed all its locations nationwide as of May 1, entering liquidation due to severe financial troubles. Founded in 2015 by former Sony Music executive Matthew Allison, Space was renowned for integrating music and spinning classes. However, the pandemic significantly impacted its operations, leading to prolonged closures and financial strain. Despite efforts to save the business, including acquiring myShape to build a hybrid fitness platform, the company ultimately failed. The shutdown has left many consumers in refund disputes, with some malls temporarily aiding affected customers while others have reported the issue to the police.
2. Peloton Considering Delisting from Stock Market
Peloton Interactive Inc. is reportedly exploring the possibility of delisting from the stock market to realign costs with private equity investors' expectations. The company, once valued at around $50 billion, now stands at $1.3 billion. Efforts to cut $200 million in expenses include restructuring and layoffs, resulting in a recent 16% stock price drop. Despite financial woes and legal challenges, Peloton remains a key player in the fitness industry with substantial revenue and millions of connected fitness subscribers. The company is also restructuring its debt, with significant borrowings due in 2026.
3. Hydrow Acquires Speede Fitness for Fast-growing Strength Training Market
Hydrow, known for its high-end rowing machines, has acquired a majority stake in Speede Fitness, a strength training company, to diversify into the fast-growing strength training market. Speede Fitness's products use advanced AI-driven technology to enhance the training experience. This acquisition aligns with Hydrow’s goal to expand as a holistic health company. The move comes amid Peloton's struggles, highlighting differing fortunes in the fitness equipment market. Hydrow continues to grow, with significant increases in sales and market presence, unlike Peloton which faces declining demand.
4. Saga Holographic Launches 3D Holographic Indoor Bike on Kickstarter
California-based Saga Holographic has introduced the HoloBike, a 3D holographic indoor bike designed to simulate realistic off-road riding experiences. Developed by a team of engineers and designers inspired by cycling through the Andes, the bike uses advanced holographic technology to create an immersive training experience without the need for headsets. The Kickstarter campaign quickly surpassed its funding goal, indicating strong interest in this innovative product. The bike features dynamic electromagnetic resistance and a library of virtual routes, offering a unique blend of fitness and immersive technology.
5. Sport Alliance Acquires PerfectGym: Enhancing Global Digital Innovation in Fitness and Leisure
Sport Alliance has acquired PerfectGym, a leading international software provider for fitness and leisure companies, to strengthen its global digital capabilities. This acquisition allows Sport Alliance to better serve fitness chains and leisure centers worldwide, driving digital transformation across over 10,000 sports facilities. Supported by PSG Equity, which has invested in Sport Alliance since 2021, this strategic move aims to enhance service delivery and innovation in the fitness industry.
Author: Roger Yao (cs07@fitqs.com)
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.
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