Last week we reported that FitLab, the parent company of Assault Fitness and RPM Training, filed Chapter 11 bankruptcy. Today, a new court filing gives insight into what happened…including details around the Assault Fitness acquisition in 2024.
Assault Fitness Acquisition
FitLab acquired Assault Fitness in February 2024 for $55 million, according to today’s court filing. The owners of Assault Fitness received $35 million in cash and $20 million FitLab stock.
There was an earnout in place for future profitability. However, that was reduced and restructured as the company faced issues shortly after the transaction. Ultimately no earnout was ever paid.
Apparently Assault Fitness “generated the vast majority of the business’s revenue and all of its profitability, and management intended to make it the focus of the restructuring.”
The international (non-U.S. based) distributor was continuing to sell products. However, shipments in the United States were “severely constrained by liquidity and logistics issues.”
Assault Fitness Supply Chain Issues
The bankruptcy filing alleges that import costs and customs releasing following the tariffs implemented by President Trump in April 2025. On top of that, the company’s major manufacturer encountered issues, forcing Assault Fitness to find a new supplier.
This transition took 6-8 months, leaving Assault Fitness without product to send to paying customers.
It is estimated that Assault Fitness experienced a 50% decline in net revenue in 2025 and missed out on close to $50 million in missed orders.
Remember, Assault Fitness was basically generating all of FitLab’s profitability before this decline.
Assault Fitness Unfilled Orders
As of October 26, 2026, FitLab had more than $3 million of fully paid inventory sitting in U.S. warehouses. While the company had an arrangement with a third-party logistics provider, inventory levels and shipment volume were unable to keep operations running.
On top of that, FitLab estimates it has collected an additional $3 million in sales that they don’t have equipment to fulfill.
Restarting Operations
Grizzly Investment Group, LLC, an entity formed by company insider Rod Trujillo is providing a $5.15 million debtor-in-possession (DIP) financing facility (loan) to keep FitLab and Assault Fitness operating through this bankruptcy process.
The DIP financing will be used to cover payroll for FitLab employees and other operating expenses. The budget includes over $835,000 for advertising and marketing and over $1.2 million in legal, finance and bankruptcy fees.
None of this, however, details how they will remedy outstanding orders that have gone unfulfilled. Stay tuned…
