FitLab Blames Bankruptcy on Loss of Nike Partnership, Trump Tariffs

FitLab Inc., which makes cardio equipment and runs boutique fitness studios, said it filed bankruptcy following disruptions to its supply chain and the loss of a key deal with Nike Inc.

Nike led FitLab’s series B financing with a $20 million investment, nearly all of which was used to launch and operate 10 Nike-branded studios in Southern California and Austin. Running these studios “required high costs” because of the level of service and brand standards at each location, FitLab’s Chief Restructuring Officer Nicholas Rubin said in a Wednesday court filing.

As part of the partnership, FitLab assumed responsibility for the underlying leases when Nike terminated the deal in early 2026, according to court papers.

“FitLab was therefore left with 10 locations that could no longer operate as Nike Studios after more than two years of investment,” Rubin said.

A representative for Nike didn’t immediately respond to a request for comment. The company behind the Jordan and Converse shoe brands has been contending with declining sales and is cutting jobs while restructuring its business, a plan it expects will save about $2.5 billion over the next five years.

Issues with landlords and a reduction in the number of studios FitLab was operating created financial stress for the company at a time when other parts of its business were also struggling, Rubin said.

Besides the loss of its Nike partnership, Fitlab said its cardio-equipment brand Assault Fitness faced “substantial uncertainty” around import costs because of President Donald Trump’s tariff policies. One of the company’s major manufacturers forced Assault Fitness to find a new supplier, a process that took six to eight months and left it “effectively out of the market for an extended period,” including the 2025 holiday shopping season, Rubin said.

FitLab said in court papers that it intends to sell its assets in Chapter 11, which also makes it easier to end costly leases. The company had grown through a series of acquisitions, buying Assault Fitness in 2024 and yoga studio business Y7 Studio for $14 million last year.

FitLab is scheduled to make its first appearance in bankruptcy court on Thursday. The company and its affiliates filed Chapter 11 on Oct. 26, listing between $10 million and $50 million in assets and more than $100 million in liabilities.

The case is FitLab Inc., number 26-11681, in the US Bankruptcy Court for the District of Delaware.

©2026 Bloomberg L.P.

This article was generated from an automated news agency feed without modifications to text.

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