Fitness equipment maker XFit Brands Inc. has relocated from Irvine to a 26,000-square-foot headquarters in Lake Forest.
The facility, at 25731 Commercentre Drive, will house offices, warehouse operations, and a showroom to demonstrate equipment, mixed martial arts training gear and cages, retail apparel, and other products for a roster of fitness club customers that includes Equinox, 24 Hour Fitness and Gold’s Gym.
Xfit’s move will help it meet rising demand and expand brands, such as its mixed martial arts Throwdown equipment and apparel brand, according to a statement.
The company, which employed 10 as of last month, posted $2 million in sales in the 12 months through June—the end of its fiscal year—about 32.5% higher than the same period a year earlier. It was established last year.
Focus
XFit plans to focus efforts over the next year on building business in the growing mixed martial arts segment by expanding development and its line of protective gear, and training and competition cages.
It provides cages and other equipment to Santa Ana-based Ultimate Fighting Championship’s gyms, which have expanded to more than 120 locations in the U.S., Australia and Canada since UFC was established in 2008.
The gym and fitness industry hit worldwide sales of $78 billion last year, up 4% over 2013, according to the International Health, Racquet and Sportsclub Association in Boston.
Funding
Steady growth and the company’s business model helped XFit attract funding from Newport Beach-based investment firm Kodiak Capital Group LLC about a year ago. Kodiak agreed to buy up to 9.9% of the company, or as much as $5 million worth of common stock. XFit earmarked proceeds for working capital and general corporate purposes.
Market Cap, Debt Facility
The company, which is traded under the symbol XFTB on the Over-The-Counter Bulletin Board, had a recent $19.4 million market value.
It also has a $1.5 million debt facility with Newport Beach-based Pacific Investment Management Co., with the option to increase the amount to $2.5 million, according to a filing with the Securities and Exchange Commission.
Lease
XFit’s 38-month lease on its new headquarters runs through October 2018, with monthly rent averaging $16,500, according to regulatory filings.
The company, whose Irvine headquarters was at 18 Goodyear, subleased a portion of the property from this past October through August 2016 at a $5,000 monthly rate.
