FitLab Inc. Files for Bankruptcy After Losing Nike Partnership

FitLab Inc., a manufacturer of cardio equipment and operator of boutique fitness studios, has filed for bankruptcy. The company attributed its financial collapse to a combination of supply chain disruptions and tariffs imposed by Donald Trump.

A primary driver of the failure was the loss of a critical partnership with Nike Inc. Nike had previously led the company's series B financing with a $20 million investment, which supported the launch and operation of 10 Nike-branded studios across Austin and Southern California.

Nicholas Rubin, the Chief Restructuring Officer for FitLab, detailed the company's struggles in a court filing. He stated that operating the Nike-branded studios involved high costs because of the strict brand standards and service levels required by the partner.