Tonal
Amid a cash crunch and slowing demand, Tonal is weighing strategic options, including a possible sale.
The latest: In an effort to shore up its business, the smart gym maker has explored raising new capital and seeking out potential buyers, according to The Information.
Ups and downs. This development follows a chaotic stretch for the company and other home fitness brands.
- Benefiting from pandemic lockdowns, Tonal said it gained 90% share of the smart strength category as sales surged 800% in 2020.
- Last summer, as COVID restrictions lifted and gym visits rebounded, the company laid off 35% of its workforce.
- Also in 2022, it landed $100M at a $1.9B valuation, bringing its total funding to $550M.
In January, Tonal cut additional staff and closed several showrooms, including its NYC Flatiron location. The Information also reported that more layoffs are imminent.
Complicating matters, Tonal’s equipment manufacturer Foxconn is suing the company after it failed to pay down an owed $5M.
More recently, Tonal increased prices for its wall-mounted unit and monthly membership, reaching $3,995 and $59.95, respectively.
Feeling the burn. As home fitness cools off, investors are questioning the brand’s ability to turn a profit. Meanwhile, potential acquirers in the connected equipment category are weathering challenges of their own. For now, who steps in to back or buy Tonal remains unclear.
