FitLab Inc. files for Chapter 11, blames Nike partnership loss and Trump tariffs

Why FitLab filed for bankruptcy

FitLab Inc. filed for Chapter 11 bankruptcy on October 26, 2026, in the District of Delaware, citing assets between $10 million and $50 million and liabilities exceeding $100 million. According to reports, the company directly tied its financial collapse to the termination of its partnership with Nike Inc. in early 2026. The deal, which had been backed by a $20 million Series B investment led by Nike, involved launching and operating 10 Nike-branded studios in Southern California and Austin.

When Nike terminated the partnership, FitLab was left responsible for the underlying leases, which became a significant financial burden. The company also pointed to supply chain disruptions caused by Trump-era tariffs as a critical factor, particularly for its Assault Fitness brand.

Supply chain and operational challenges

Assault Fitness, acquired by FitLab in 2024, faced prolonged supply chain issues due to tariff policies. A major manufacturer’s exit forced the brand to secure a new supplier, a process that took six to eight months. This disruption sidelined Assault Fitness during the 2025 holiday shopping season, a peak sales period for fitness equipment.

FitLab’s operational costs were further strained by the high standards required for its studios, including those tied to the Nike partnership. The company had also grown through acquisitions, including the $14 million purchase of yoga studio chain Y7 Studio in 2025. However, these expansions failed to offset the financial pressures from terminated partnerships and supply chain delays.

Nike’s restructuring and FitLab’s fallout

Nike’s decision to terminate its partnership with FitLab aligns with its broader efforts to restructure and cut costs. The company has been dealing with declining sales and announced plans to save $2.5 billion over the next five years through job cuts and strategic shifts. The termination of the FitLab deal reflects Nike’s prioritization of its core business over third-party collaborations.

FitLab’s Chief Restructuring Officer, Nicholas Rubin, is overseeing the Chapter 11 process as the company seeks to sell assets and address its liabilities. The outcome might set a precedent for other startups reliant on corporate partnerships or exposed to policy-driven supply chain risks.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

FitLab’s bankruptcy is a cautionary tale about the vulnerabilities of partner-dependent business models. The company’s collapse was accelerated by Nike’s strategic shift—a risk for any startup aligned with a larger, evolving corporation. The case also highlights how external factors, like tariffs, can cripple hardware-driven startups, especially when supply chains lack redundancy. For operators, FitLab’s Chapter 11 filing underscores the importance of contingency planning for lease obligations and the potential value of asset sales in restructuring. However, the outcome serves as a reminder that even well-funded startups can fail when structural costs outpace adaptability.

Key takeaways

• Founders reliant on a single strategic partner should diversify revenue streams to avoid FitLab’s fate, especially if the partner is undergoing restructuring.
• Policy-driven supply chain risks—such as tariffs—can create prolonged disruptions, particularly for hardware or import-dependent startups.
• High fixed-cost models (e.g., leased studios) become unsustainable when partnerships dissolve or revenue streams dry up.
• Chapter 11 may offer a lifeline for startups drowning in lease obligations or debt, but recovery is far from guaranteed.