Wahoo Fitness has received “significant” equity support from current and new investors which will see the brand eliminate all debt and provide cash liquidity.
Led by Wahoo’s Founder, Chip Hawkins, Wahoo says it has “fully recapitalised” its business with support from investors who have experience in supporting diverse connected fitness and endurance athlete platform businesses.
The confidential arrangement is also designed to extend the company’s prominence in advancing innovation in the global smart fitness and training category.
The announcement, which was made on Wednesday, May 17, comes after a period of uncertainty for the brand.
In April, the brand had its credit rating lowered by rating agency Moody’s after it delayed debt service payments at the beginning of the month.
In the same month, fellow credit ratings agency S&P downgraded Wahoo’s debt to D.
Chip Hawkins, Wahoo founder, said: “The successful recapitalisation 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.
“Wahoo’s management team is energised by a renewed focus on delighting its customers and continuing Wahoo’s mission of building a better athlete in all of us.”
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Mike Saturnia, Wahoo CEO, added: “The investment from both new and existing investors is a clear sign of confidence in the strength of Wahoo- specifically our team, brand, strategy, and powerful ecosystem of innovative products, software, and services.
“This could not have happened without months of hard work and support from our channel partners.
“We want to thank our supply chain and retail and distribution partners for their trust and confidence as we navigated to a successful conclusion to this process.”