After months of uncertainty, Wahoo Fitness is getting to business.
What’s happening: The cycling technology company eliminated its debt as part of a recapitalization effort led by founder Chip Hawkins.
Known for innovative products like bike computers and indoor trainers, Wahoo’s financial situation worsened over the last year as sales declined and debt piled up.
Ultimately, the company was taken over by lenders, bringing most operations to a halt.
A clean slate. Getting a fresh start, last week, Hawkins announced that Wahoo had been “fully recapitalized”:
“The successful recapitalization of the business provides the flexibility we were seeking as a management team to allow for investment in innovation and growth from the company’s substantial base and category leadership position, by diversifying the breadth of its offerings to better support athletes and fitness enthusiasts.”
According to DC Rainmaker, the investors include Rhône Group, David Wichmann of Jory Capital and Human Powered Health, RZC Investments, and Hawkins himself.
Looking ahead: Back in the saddle with a healthy balance sheet in tow, Wahoo now has its work cut out for them to reclaim a top spot on the cycling tech podium.