Fit Lab Inc., a cardio equipment and boutique fitness studio operator, filed for Chapter 11 bankruptcy citing the loss of its Nike partnership and Trump-era tariff policies as primary factors. The company, which received a $20 million series B investment from Nike, operated 10 Nike-branded studios in Southern California and Austin. Following Nike's termination of the deal in early 2026, Fit Lab assumed the underlying leases but was left with locations that could no longer operate as Nike Studios after more than two years of investment.
Chief Restructuring Officer Nicholas Rubin stated the company faced financial stress from landlord issues and reduced studio operations alongside the Nike partnership loss. Additionally, Fit Lab's cardio equipment brand, Assault Fitness, struggled with import cost uncertainty due to President Donald Trump's tariff policies. One major manufacturer forced the brand to find a new supplier, taking six to eight months and leaving it.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing