Barry’s Bootcamp secured a fresh investment from Princeton Equity Group on Monday, as the boutique fitness industry begins to falter.
In an interview with CNBC, Joey Gonzalez, co-CEO of Barry’s, stated that the company’s premium placement in the industry is the reason this [boutique fitness] works for them. Our goal is always to improve the Barry’s experience while reducing the possibility of any kind of brand dilution.
According to Gonzalez, the goal of this funding round is to invest in brand positioning and customer experience in a highly competitive market. In its recognizable red-lit halls, Barry’s provides intense running, lifting, and training sessions.
More than 7 million people visited Barry’s 89 studios worldwide in 2024.
With $1.2 billion in assets under management, Princeton is a private equity business that specializes on franchising and consumer services. It has made investments in various wellness companies, including the sports training center D1 Training and the spa chain Massage Envy.
The investment’s magnitude was not revealed.
The new funding for Barry’s joins a portfolio of private equity investments from companies like LightBay Capital and North Castle Partners that span over 20 years.
According to Gonzalez, the money will be used in part to finance Barry’s expansion into 12 U.S. cities this year, including Madrid, Athens, Dublin, and Charleston, South Carolina, as well as Hoboken, New Jersey, and Salt Lake City.
According to Gonzalez, “this partnership is enabling us to consolidate our operations in the UK and Canada.” In order to build a close-knit community and generate efficiency, we will now be managing activities in these nations.
According to Research and Markets, the larger global market for boutique fitness studios was estimated to be worth over $48 billion in 2023 and is projected to reach $86 billion in 2030. Nevertheless, a number of well-known brands have had difficulty expanding their clientele.
Last year, the health and wellness franchisor Xponential Fitness sold off its stake in Stride Fitness and Row House, two faltering boutique companies.
Randal Konik, an analyst at Jefferies, mentioned industry challenges such as macroeconomic worries that can result in a decline in consumer spending. He also stated that fitness has become more necessity-based as more individuals place a higher priority on their health and well-being.
According to Konik, the emphasis on health and wellness during COVID-19 will be a tailwind, along with a shift toward strength training, which has increased demand for gym memberships and fitness programs of all kinds.
One of the primary reasons to remain on the sidelines of the company, according to Piper Sandler analyst Korinne Wolfmeyer, is the uncertainties surrounding unit growth at Xponential.
Gonzalez claimed that his business is defying the norm.
According to Gonzalez, Barry’s is one of the pioneers of fitness and takes a very practical approach with an emphasis on effectiveness. In actuality, Barry’s has stayed true to our fundamental competencies: member experience, immersion experience, and fitness experience.
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