(Bloomberg) -- LightBay Capital, a buyout firm led by Ares Management alumni, has made a preferred equity investment in fitness chain Barry's Bootcamp.
“This investment allows us to continue to support our talented employee community during the unexpected Covid-19 closures while also investing in the future, including strengthening our digital product offering,” Barry's Chief Financial Officer Jonathan “JJ” Gantt said in a statement.
Gantt didn't disclose the size of the minority stake.
Before the coronavirus pandemic, Barry's Bootcamp offered in-person workouts priced at around $30 a class that combined treadmill running and strength training, all under red lighting with loud music. The pandemic forced it and other fitness franchises to develop digital offerings, and its “Barry's At Home” enables users to book streaming classes.
Some traditional gyms couldn't power through the pandemic's forced closures and lost revenue. Gold's Gym International Inc. filed for bankruptcy in May, followed by 24 Hour Fitness Worldwide Inc. this week.
Beginning this month, Barry's Bootcamp has reopened studios in Dallas, Houston, Atlanta, Nashville, and Miami. It has also reopened some international locations, including in Norway, Sweden, Italy, Australia and Dubai.
Last fall, Barry's Bootcamp interviewed advisers for a potential sale process that was slated to begin in 2020, Bloomberg reported. Any such transaction is now on hold, said Jon Canarick, a managing director at North Castle Partners, the majority owner of Barry's Bootcamp.
“We are excited to partner with LightBay and continue our relationship with North Castle as we navigate the challenging Covid-19 environment and plan for the future,” Gantt said.
Los Angeles-based LightBay was founded in 2016 by former Ares partners Adam Stein and Nav Rahemtulla, who oversaw that firm's consumer and retail and health-care private equity investing efforts, respectively.
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