Xponential Fitness’ board says it’s exploring a sale, an announcement that follows weeks of shareholder pressure.
In March, Houston-based Voss Capital — the company’s biggest shareholder, controlling 19.3% of outstanding shares — issued an open letter urging the board to hire independent financial advisors and explore a full sale.
Kanen Wealth Management, which owns roughly 4% of Xponential’s shares, followed with its own public demand on April 1.
The boutique fitness franchisor operates five brands within its portfolio, Club Pilates, Pure Barre, YogaSix, BFT and StretchLab, down from 11 brands around two years ago.
Xponential has tapped Jefferies LLC as its financial advisor for the review, during which the board’s independent directors will evaluate a range of potential alternatives, including a sale, merger or other strategic or financial transaction, the company said.
The board has also appointed Nicole Parent Haughey, a former Fortune 50 executive and founder of Halsey Loganberry Growth Advisors, as an independent director. Jair Clarke, Chelsea A. Grayson and Bruce Haase have stepped down from the board.
The review comes as Xponential continues to navigate a turbulent stretch. Earlier this year, the boutique fitness franchisor agreed to pay $17 million to settle a Federal Trade Commission investigation and finalized a separate $22.75 million payout to more than 500 current and former franchisees.
CEO Mike Nuzzo, who took the helm last August, succeeding Mark King, said the company would continue executing its strategy while the review proceeds.
