VANCOUVER, Wash. (AP) ¿ Fitness company Nautilus Inc. said Tuesday it plans to sell its commercial business unit and will list the related assets as discontinued operations in its third-quarter results.
The Vancouver, Wash.-based company said it is seeking buyers for its commercial business as part of a restructuring plan to cut costs and focus on its direct-to-consumer and retail businesses. It plans to record a loss on the value of the assets in the third quarter.
Those assets include a manufacturing plant and three warehouses in Virginia; the StairMaster and StepMill brands; the commercial indoor cycling line; the commercial strength and cardio equipment including the Nautilus ONE strength line. It has hired Robert W. Baird & Co. to help find a buyer.
CEO Edward Bramson said the divestiture will help to improve operating margins, utilize capital more efficiently and focus the organization on the higher-growth consumer fitness business.Bramson said the company would keep the Nautilus, Schwinn and Universal brands as part of its consumer retail business. Nautilus shares fell by a penny to $1.69 in aftermarket trading Monday.