When Bad Deals Go Good

When Bad Deals Go Good

How Core Health & Fitness strengthened both their service provider network and portfolio in one move

 

When Aktiv Solutions was acquired by Core Health & Fitness following Aktiv’s foreclosure by its private-equity backer, Gaston Capital Partners, many independent service providers (ISPs) were left holding the bag.

 

In a notice from Aktiv’s attorneys, it was stated plainly: “[Aktiv] has no ability to make payments to its creditors.”

 

For those of us in the service community, we’ve seen this story before. The business folds, the investors walk away, and the little guy, the one who actually did the work, gets nothing. NAHFTA heard from Independent Service Providers (ISPs) across the country that multiple past-due invoices were still floating around, and with Aktiv’s official shutdown, it seemed there was no hope of these providers being made whole.

 

To some, a $1,000 invoice might not seem like much. But for a small independent business, it can be the line between staying open or shutting down. For the local service pro who gives everything, handling installs, repairs, parts, paperwork, and clients, it’s more than just money. When that effort is met with a dismissive “tough luck on payment,” it’s not just disrespectful; it can be the final blow that makes it all feel not worth it.

 

At first, it appeared to be business as usual: ISPs left unpaid while those who set the failure in motion moved on untouched.

 

But then something unusual happened.

 

We began hearing reports from ISPs that their invoices, Aktiv invoices, were being paid. Not by a bankruptcy trustee. Not by private equity. By Core Health & Fitness.

 

Core began stepping in to settle past-due Aktiv obligations, even in cases where they weren’t legally required to do so. It was a voluntary act, one that recognized the value of the ISP network and the partnerships that keep our industry running.

 

After hearing multiple reports of these payments being made, NAHFTA reached out to Core Health & Fitness to learn more. The response we received from their leadership team says everything about the company’s approach to accountability:

 

“It’s not always easy to do what’s right, however, it is rewarding when it is all said and done.” —Michael Bruno, CEO, Core Health & Fitness

 

“Inheriting a tough situation doesn’t mean inheriting the silence that often follows. We stepped in to ensure our customers could get the products they needed installed and in doing so, we also supported service providers who had been left behind. By honoring those commitments and welcoming some into our broader network, we didn’t just close the loop on past obligations—we rebuilt trust and created a path forward for long-term partnership.” —Jon Thiel, VP of Global Customer Support & Installs, Core Health & Fitness

 

NAHFTA wholeheartedly applauds Core Health & Fitness and their leadership for demonstrating a true commitment to both their customers and the independent service provider network. Their actions serve as a model for what accountability and partnership should look like in our industry.

 

In an industry where unpaid service providers have become almost expected collateral damage after corporate shake-ups, Core’s decision to make things right is noteworthy. It demonstrates that accountability doesn’t have to end when an acquisition begins, and that trust, once earned, can become a competitive advantage.

 

Because when accountability wins, we all do.

 

This article is part of NAHFTA’s Accountability Series: advancing fair, transparent, and sustainable business practices across the fitness service industry.