Less than two months after Tough Mudder's creditors in the USA forced it into filing for Chapter 11 bankruptcy protection, the extreme obstacle race operator has been acquired by rival brand Spartan Race.
With Spartan Race having also saved Tough Mudder’s UK-based operations earlier this month, it has, according to Bloomberg, agreed to pay US$700,000 for the company and take on as much as $10 million in liabilities.
Spartan will reportedly also honour all tickets that were previously purchased for Tough Mudder events.
In making the acquisition, Spartan has already hired many of Tough Mudder’s employees, including its former Chief Executive, Kyle McLaughlin.
Approving the sale, U.S. Bankruptcy Judge Christopher Sontchi stated “this is a particularly cool business, I have to say” adding that the sale “preserves jobs and an interesting product that provides a lot of satisfaction to its participants.”
In November, Spartan signed a letter of intent to buy Tough Mudder, but a dispute among Tough Mudder’s founders and its main lender killed the deal, according to court documents. In January, about a month after an attempt to mediate the dispute failed, Tough Mudder was forced into bankruptcy by some of its creditors.
In 2014, according to PitchBook data, Tough Mudder was valued as being worth US$200 million.
Boston, Massachusetts, USA -based Spartan, hosts 250 events a year in about 40 countries in which participants run, crawl through mud and climb over obstacles. Having received backing from Hearst Ventures, it was valued at US$50 million in 2016, according to PitchBook data.
As a result of the sale, Tough Mudder has now reopened registrations for its 2020 events in USA and Canada.
Run by a local licensee, Australasian Leisure Management understands that its Australian operations were not impacted by the bankruptcy.
13th February 2020 - Administrators conclude sale of Tough Mudder’s UK business to Spartan Race
8th February 2020 - Tough Mudder entities enter administration
27th January 2020 - Tough Mudder resumes operations in Europe as administrators appointed
21st January 2020 - Creditors push Tough Mudder towards bankruptcy and sale to rival Spartan
20th December 2019 - New Spartan Race format to make Australian debut at Melbourne’s Marvel Stadium
5th September 2019 - Anytime Fitness and Tough Mudder reveal new partnership
13th February 2019 - Tough Mudder signs with ONTHEGO as Australia apparel partner for the next three years
23rd January 2019 - Tough Mudder looks to secure capital investment for linked fitness club brand
14th May 2018 - Tough Mudder to expand in Middle East with Oman events
9th February 2018 - Spartan Race announces first ever season of events in China
16th September 2017 - Tough Mudder Chief Executive releases account of building his obstacle race movement
7th May 2017 - Spartan race event expected to attract 4,000 participants in Western Australian return
18th August 2016 - ACTIVE Network introduces community-based fitness app
31st July 2016 - Tough Mudder creator slams Australian red tape
23rd July 2016 - Tough Mudder to hold first event in Bali
17th June 2016 - Tough Mudder looks to Asian and Middle East expansion with IMG partnership
11th November 2015 - Muddy fun as Mudderella stages first Australian event
7th October 2015 - Tough Mudder announces new partners in advance of 2015 season
14th November 2014 - Spartan Race Australia launches first ever stadium event