TRX Founder Randy Hetrick Buys TRX for $8.4 Million in Bankruptcy Auction

Randy Hetrick is back at the helm of the company that he founded after teaming with JFXD Capital and its head Jack Daly to buy the company for $8.4 million at an Aug. 17 Chapter 11 auction. (Photo courtesy TRX. )

TRX Founder Randy Hetrick teamed with private equity investment firm JFXD Capital LLC, headed by Jack Daly, to buy TRX as part of the company’s bankruptcy proceedings, according to an Aug. 29 announcement from the company. The winning bid price was $8.4 million, according to documents from U.S. Bankruptcy Court Central District of California Santa Ana Division. The winning backup bid was $8.3 million.

TRX filed for Chapter 11 bankruptcy in June 2022 due to increased competition and macroeconomic challenges, the company said at the time. TRX had a record-breaking year in 2020 because of the rapid growth experienced with the COVID-19 home fitness boom, but as COVID subsided, the company faced challenges that led it to file for Chapter 11 and seek a buyer. The Chapter 11 filing showed that TRX had no more than $50 million in listed assets and no more than $50 million in liabilities.

Hetrick will serve as chairman of TRX while Daly will serve as CEO.

In 2004, Hetrick founded TRX, Del Ray Beach, Florida, after inventing the Suspension Trainer as a SEAL team squadron commander. The Stanford Graduate School of Business MBA recipient sold a controlling interest in the company in 2019 and founded OutFit, an outdoor mobile fitness venture, in July 2020.

“It’s gratifying to be back at the helm of TRX at a time when the world is emerging from COVID and the company needs inspired, innovative leadership,” Hetrick said. “TRX remains one of the fitness industry’s most recognizable and influential global brands, and under a new, experienced management team – powered by passion and renewed vision – our brand will build on its position as the most trusted name in fitness. I couldn’t be happier to be back and to have the opportunity to bring several of my best longtime teammates back with me.”

Daly  is a former partner and investment committee member of both Goldman Sachs’ Merchant Banking Division and TPG Capital. For 25 years he has invested in and built large companies through control transactions. Daly is also a fitness enthusiast and serves as the treasurer of the Navy SEAL Foundation, where he has served as member of the board of directors for over nine years.

“It’s a rare opportunity to acquire a brand that remains as well respected and revered as an innovator within its industry as TRX – the ability to leverage the incredible brand equity of TRX is what makes this such a compelling and worthwhile venture,” Daly said. “Everyone loves a comeback story. Powered by Randy’s knowledge of the brand, the industry and his personal passion for this brand, coupled with new world-class management, there’s little doubt about the success that lies ahead for TRX.”Club NewsIndustry News