Home Gym Maker Tonal Looks for Buyer After Burning Through Cash

Tonal, a celebrity-backed home fitness startup that saw its valuation balloon to $1.6 billion in 2021, has explored options including a sale, two people familiar with the matter said.

Tonal—an even more upmarket alternative to Peloton—burned through cash last year after spending heavily on hiring, opening bricks-and-mortar showrooms and marketing, including an ad last year featuring tennis star Serena Williams. ​

The company has been scrambling to cut costs by shuttering stores, including a showroom in New York’s Flatiron District that had been open for just over a year and making a fresh round of layoffs that hit marketing and other staff in late January. It’s also been locked in a legal battle with one of its hardware suppliers over payments dating back to March 2022.