It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
Best Buy’s board changes to Hidden Valley Ranch’s latest product drop, here’s our closeout for the week.
BowFlex files for bankruptcy
At-home fitness company BowFlex on Tuesday filed for Chapter 11 bankruptcy protection.
BowFlex has identified a stalking horse bidder in Johnson Health Tech Retail, Inc., which will acquire “substantially all of the assets” of the company for $37.5 million in cash.
The company has also secured a bankruptcy loan of $25 million, consisting of a $9 million revolving credit commitment and $16 million term loan reflecting the roll-up of BowFlex’s pre-filing term loan.
Founded in 1986 with a single strength training machine, BowFlex grew to be “a global leader in innovative home and connected fitness solutions,” selling through both its own channels as well as through wholesale partners. Aside from its namesake brand, the company’s entities included Schwinn, JRNY and Nautilus.
However, the company faced challenges in recent years, including fading demand after the pandemic, shifts in consumer behavior, macro-economic trends, interest rate pressures and “retailer over-inventorying,” CFO Aina Konold said in court documents.
In the summer of 2021, the company began to explore strategic partnerships and sought out additional capital, but that process failed to result in an out-of-court transaction, Konold said. As part of its strategic realignment, the company in November 2023 changed its name from Nautilus, Inc. to BowFlex Inc after it sold off the Nautilus brand trademark assets and related licenses.
The company at the end of last year sought out an in-court sale of its assets, which successfully resulted in a stalking horse bid from Johnson Health Tech Retail.
BowFlex employs about 330 individuals in the U.S. and 70 internationally.
Public Lands, Saucony partner on running shoes
Dick’s Sporting Goods’ Public Lands banner has partnered with Saucony on a line of road and trail running shoes, according to details emailed to Retail Dive. The shoes are being sold exclusively at Public Lands and include both women’s and men’s styles.
The collaboration “invites fans to embark on the ultimate journey of getting outside, exploring and celebrating self expression,” per the email. There are currently three different styles on the Public Lands website: The Ride 17 running shoe, the Guide 17 running shoe and the Peregrine 14 trail running shoe.
Best Buy board changes ahead
J. Patrick Doyle plans to retire from Best Buy’s 13-member board of directors at the end of his June 12 term. David Kenny, a board member since 2013, will succeed him as chairman of the board, the company announced Thursday. Doyle had served on the board since 2014 and has been chairman since 2020.
In addition, the company said Eugene Woods will also retire from the board on June 12. Woods has been a board member since 2018. He also is the CEO of Advocate Health and a member of Johnson & Johnson’s board of directors. Woods supported Best Buy’s recent advancements into the health care sector.
Retail Therapy
Ranch dressing is a blessing
In possibly one of the best salad dressing developments in recent history, Hidden Valley Ranch on Wednesday revealed seven new flavors. The first coming to stores is Cheezy Ranch, which can be used as a dip (or to make nachos) and retails for $5.99. It will show up at Walmart in late March and Kroger in April.
Other variations coming out this spring include garlic ranch, Nashville hot, creamy jalapeno, spicy hot honey, green goddess and parmesan ranch. Because when I dip, you dip, we dip.
Hop on over to the gold bunny beach rental
Swiss chocolate company Lindt opened a Gold Bunny-inspired vacation home in Carlsbad, California, according to a press release on Wednesday. To celebrate the introduction of the Lindt Gold Bunny Getaway, the company is hosting a sweepstakes for a weekend stay at the beachside rental during Easter weekend, March 29 to March 31. The sweepstakes prize also includes $1,500 for travel costs.
Now through March 12, fans can enter the giveaway and the winner will be announced March 13. To also celebrate the news, Lindt added two new options to its Gold Bunny chocolate: double milk and crispy hazelnut. The vacation home is stocked with Lindt chocolate, according to the release.
What we’re still thinking about
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Foot Locker on Wednesday announced it expects a two-year delay in when it will achieve its Lace Up plan targets. The plan, outlined in March 2023, calls for $10 billion in revenue — $2.5 billion of which will be in digital sales — and an EBIT margin of 8.5% to 9%.
“Given our lower starting point exiting 2023, we expect a two-year delay in achieving that goal and now see reaching that target by 2028,” CFO Mike Baughn said in a statement.
The news came as Foot Locker announced earnings, with sales down 6.8% for the year. The retailer also announced a plan to revamp two-thirds of its global Foot Locker and Kids Foot Locker stores over the next few years, and it is opening its first store of the future next month.
$49
That’s how much an annual Target Circle 360 membership will cost for the retailer’s cardholders. As part of a launch promotion, Target Circle 360 loyalty program memberships will cost $49 for the first year for people who don’t have a Target Circle Card and sign up by May 18. After that, the annual cost is $99. Target Circle cardholders retain a $49 yearly membership cost.
The company plans to debut the paid membership program on April 7, competing with similar, delivery-focused paid loyalty programs offered by Amazon and Walmart. Target Circle 360’s perks include unlimited, free same-day delivery for orders $35 and up and free two-day shipping.
What we’re watching
Is bankruptcy in Joann’s future?
Telsey Advisory Group on Tuesday announced that it is dropping coverage of Joann due to uncertain financial viability. The firm listed the retailer’s heightened risk of bankruptcy, stock delisting and questions about the long-term viability of the business as reasons for its decision. Telsey also said the company’s high debt ($1.16 billion at the end of the third quarter of 2023) in relation to its cash balance ($28 million) has made it difficult for the retailer to invest in its business, reassure vendors and put it in a position to pay its debt obligations due in 2026 and 2028. Bloomberg reported this week that the craft retailer is planning a bankruptcy filing that would hand keys to its lenders.
