Fitness armory founder Dan Kohn recently told The Washington Times that his company will soon cease operations and close all of its locations in the US and Canada, including its online store.
The company says it will no longer accept new orders, and the online store will be shut down.
Kohn, who founded the company in 2012, said the business model of fitness equipment has been losing momentum for years.
“For the last few years, I’ve been seeing a huge decline in demand for our products and I was worried that we were going to lose sales,” he told the paper.
Keen to put his financial health first, Kohn is now taking a more aggressive approach to getting fitness equipment out to consumers, rather than relying on brick-and-mortar retailers.
In December, he sold a large portion of his stake in his company, and his stock has plummeted in value.
According to The Washington Free Beacon, he plans to sell some of his remaining shares of the company to help pay for his next steps.
He plans to take the rest of his money and use it to raise funds for a start-up he said he’s building to help entrepreneurs get started in the fitness industry.
“I think it’s a great opportunity for entrepreneurs to come to the US, but also for businesses to come here and grow,” Kohn told The Free Beacon.
“The business model is not working.”
Kohn said he is now focused on getting his new start-ups off the ground.
“There’s no doubt that we have an opportunity to do that,” he said.
“We’re trying to get the fitness business going.”