Barry's Bootcamp reveals new funding amidst a wave of exits from the boutique fitness sector.

Participants work out at Barry’s Bootcamp at Red Studios in Los Angeles. 

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Wally Skalij | Los Angeles Times | Getty Images
  • Barry's Bootcamp announced on Monday new investment from Princeton Equity Group.
  • The new funding for Barry contributes to a history of private equity investments that spans almost twenty years, involving firms such as LightBay Capital and North Castle Partners.
  • As of 2024, Barry's operates 89 studios worldwide, which recorded over 7 million visits.

As the boutique fitness industry faces challenges, Barry's Bootcamp revealed on Monday that it has secured new funding from Princeton Equity Group.

In an interview with CNBC, Barry's co-CEO Joey Gonzalez explained, "The success of our boutique fitness model lies in our premium positioning within the market. Our goal is to consistently reduce any potential risks of brand dilution while enhancing the overall experience for our clients."

Gonzelez mentioned that this round of funding will prioritize enhancing client experience and strengthening brand positioning within a highly competitive market. Barry's provides intense running, weightlifting, and training sessions in its signature red-lit environments.

As of 2024, Barry's operates 89 studios worldwide, which recorded over 7 million visits.

Princeton is a private equity firm specializing in franchising and consumer services, managing assets totaling $1.2 billion. The firm has made investments in various wellness brands, including the spa franchise Massage Envy and the athletic training center D1 Training.

The amount of the investment has not been revealed.

The new funding for Barry contributes to a history of private equity investments that spans almost twenty years, involving firms such as LightBay Capital and North Castle Partners.

Gonzalez mentioned that Barry's plans to utilize the investment to support its expansion into 12 cities this year, which includes Charleston, South Carolina; Hoboken, New Jersey; and Salt Lake City, along with international sites in Madrid, Athens, and Dublin.

Gonzalez stated, "This collaboration allows us to streamline our operations in both the UK and Canada. We will be managing activities in these regions, which will help us build a tight-knit community and enhance our efficiency."

According to estimates from Research and Markets, the global boutique fitness studio market was valued at approximately $48 billion in 2023 and is projected to expand to $86 billion by 2030. However, many well-known brands have faced challenges in increasing their customer base.

Xponential Fitness, a franchisor of health and wellness brands, divested from two struggling boutique chains — Stride Fitness and Row House — last year.

Analyst Randal Konik from Jefferies pointed out that the industry is facing challenges such as macroeconomic issues that may lead to a decrease in consumer spending. He noted that fitness has become increasingly essential, with more individuals focusing on their health and wellness.

"According to Konik, there will be a strong emphasis on health and wellness in the aftermath of Covid. Additionally, the increasing interest in strength training has boosted the demand for various fitness classes and gym memberships."

Piper Sandler analyst Korinne Wolfmeyer pointed to "uncertainty regarding unit growth" at Xponential as a key factor for maintaining a cautious stance on the stock.

Gonzalez claims that his company is going against the grain.

"Gonzalez remarked, 'I consider Barry's to be one of the pioneers in the fitness industry, embracing a straightforward and effective approach to health and wellness. The true achievement of Barry's lies in its dedication to our fundamental strengths: delivering an exceptional fitness experience, creating immersive environments, and prioritizing member satisfaction.'"