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09.06.01
DIRECT FOCUS SUBMITS BID TO ACQUIRE FITNESS DIVISION OF SCHWINN
DIRECT FOCUS SUBMITS BID TO ACQUIRE FITNESS DIVISION OF SCHWINN
DIRECT FOCUS SUBMITS BID TO ACQUIRE FITNESS DIVISION OF SCHWINN
VANCOUVER, WA – September 6, 2001 – Direct Focus, Inc. (Nasdaq: DFXI), a marketing company for fitness and healthy lifestyle products with a direct business model, announced today that it has submitted a bid for an upcoming bankruptcy auction to acquire substantially all of the assets of Schwinn/GT’s fitness equipment division. The Direct Focus bid is linked to a bid submitted by Pacific Cycle LLC for the purchase of substantially all of the assets of Schwinn/GT’s bicycle division.
In August of 2001, the U.S. Bankruptcy Court for the District of Colorado approved a bid and auction procedure for all of the assets of Schwinn/GT’s bicycle division. Although the bankruptcy court’s bid and auction procedure directly addresses sale of the bicycle division, it also allows bids for the entire Schwinn/GT business, including both the bicycle and fitness assets. Therefore, Direct Focus has submitted this joint bid with Pacific Cycle for consideration by Schwinn/GT at the upcoming auction to be held on September 10, 2001, in Denver, Colorado, under the supervision of Bankruptcy Judge Sidney B. Brooks. The purchase price for such an acquisition has not yet been determined and will be subject to court approval.
“We have a strong interest in Schwinn’s fitness division assets,” said Brian Cook, CEO of Direct Focus. “We have linked our bid to that of Pacific Cycle, which is interested in acquiring the bicycle division assets. Acceptance of our joint bid will provide Direct Focus and Pacific the best opportunity to protect the integrity of the Schwinn brand, and will provide Schwinn with the option of selling substantially all of its assets in one transaction.”
“Like our purchase of the assets of Nautilus International, Inc. in January 1999 and the subsequent turnaround and growth of those operations, expansion through acquisitions is an important part of our strategy. We feel that the bankruptcy auction provides us with a unique opportunity to expand our business. Our management team is very familiar with Schwinn, and we believe its strong brand name and quality fitness products can be an excellent fit with our growing portfolio of fitness and healthy lifestyle products.”
About Direct Focus, Inc.
Direct Focus, Inc. is a marketing company for fitness and healthy lifestyle products with a direct business model. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and Web sites. The Company also sells its Nautilus commercial fitness equipment directly to health clubs and other institutions, and its Nautilus consumer fitness products through retail athletic stores. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
This press release contains forward-looking statements relating to anticipated sales and the development of Direct Focus' products and services, including statements regarding its Nautilus business. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges, and general economic conditions. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Direct Focus' annual report on Form 10-K for the fiscal year ended December 31, 2000.
In August of 2001, the U.S. Bankruptcy Court for the District of Colorado approved a bid and auction procedure for all of the assets of Schwinn/GT’s bicycle division. Although the bankruptcy court’s bid and auction procedure directly addresses sale of the bicycle division, it also allows bids for the entire Schwinn/GT business, including both the bicycle and fitness assets. Therefore, Direct Focus has submitted this joint bid with Pacific Cycle for consideration by Schwinn/GT at the upcoming auction to be held on September 10, 2001, in Denver, Colorado, under the supervision of Bankruptcy Judge Sidney B. Brooks. The purchase price for such an acquisition has not yet been determined and will be subject to court approval.
“We have a strong interest in Schwinn’s fitness division assets,” said Brian Cook, CEO of Direct Focus. “We have linked our bid to that of Pacific Cycle, which is interested in acquiring the bicycle division assets. Acceptance of our joint bid will provide Direct Focus and Pacific the best opportunity to protect the integrity of the Schwinn brand, and will provide Schwinn with the option of selling substantially all of its assets in one transaction.”
“Like our purchase of the assets of Nautilus International, Inc. in January 1999 and the subsequent turnaround and growth of those operations, expansion through acquisitions is an important part of our strategy. We feel that the bankruptcy auction provides us with a unique opportunity to expand our business. Our management team is very familiar with Schwinn, and we believe its strong brand name and quality fitness products can be an excellent fit with our growing portfolio of fitness and healthy lifestyle products.”
About Direct Focus, Inc.
Direct Focus, Inc. is a marketing company for fitness and healthy lifestyle products with a direct business model. The Company currently markets its Bowflex line of home fitness equipment and Nautilus Sleep Systems directly to consumers, using an effective combination of television advertising, 800-call centers and Web sites. The Company also sells its Nautilus commercial fitness equipment directly to health clubs and other institutions, and its Nautilus consumer fitness products through retail athletic stores. The Company is headquartered in Vancouver, Washington. Direct Focus is located on the Web at www.directfocusinc.com.
This press release contains forward-looking statements relating to anticipated sales and the development of Direct Focus' products and services, including statements regarding its Nautilus business. Factors that could affect Direct Focus' actual results include its reliance on a limited product line, fluctuations in advertising rates, market acceptance of its existing and future products, growth management challenges, and general economic conditions. A more detailed description of certain factors that could affect actual results include, but are not limited to, those discussed in Direct Focus' annual report on Form 10-K for the fiscal year ended December 31, 2000.