The Rise and Fall of FitLab: How the “Boutique Fitness Roll-Up” Unraveled

In 2019, former fitness executives Mike Melby and Brian Kirkbride set out to build an empire. Their pitch was straightforward: fitness was too fragmented. By buying up prominent fitness brands, race series, boutique studios, and training apps, their venture platform, FitLab, would create an all-in-one ecosystem—connecting consumers from connected gear and digital apps to live boutique experiences and outdoor races.

A few years later, that grand vision hit reality, culminating in abruptly shuttered studios, stranded founders, unpaid staff, tax liens, and high-interest debt.

The Aggressive Shopping Spree

Backed by a $15 million Series A in 2022 and later a massive debt facility from Atlas Credit Partners in 2024, FitLab moved quickly to consolidate iconic lifestyle and fitness names:

• Boutique Studios: Acquired hot hip-hop yoga chain Y7 Studio, Mile High Run Club, Racked, and Sanctuary Fitness.
• Flagship Partnerships: Partnered directly with Nike to launch and run boutique Nike Training and Running Studios.
• Events & Races: Acquired the overnight relay giant Ragnar Relay.
• Digital Apps & Hardware: Acquired the digital training platform Fitplan, high-end equipment manufacturer RPM Training, action-sports eyewear brand Electric, and conditioning hardware icon Assault Fitness.

FitLab promised incoming founders that they would provide centralized human resources, marketing power, financial muscle, and a bridge to nationwide franchising.

When the Flywheel Ground to a Halt

Rather than realizing synergies, FitLab struggled under the weight of operational overhead, heavy leverage, and rapid studio management demands. Starting in late 2024 and accelerating through 2026, the cracks became public:

• Studio Closures & Brand Offloading: Nike quietly pulled the plug on its brick-and-mortar boutique push. Rather than righting the ship, FitLab handed off day-to-day operations for its studio portfolio (including Y7 and Mile High Run Club) to third-party operator VM Fitness.
• The Y7 Meltdown: In late summer 2026, Y7 suddenly shuttered its remaining studios, leaving instructors locked out and owed back pay. Y7 founder Sarah Larson Levey publicly shared that FitLab cut her out of decisions, transitioned staff via abrupt DocuSigns, and left her with unpaid equity in an all-stock buyout.
• Fitplan’s Abandonment: Once a top-grossing fitness creator app, Fitplan declined after acquisition. Former staff reported hiring freezes, slashed marketing, unpaid creator royalties stretching into six figures, and app neglect.
• Vendor Non-Payments & Events Under Threat: Ragnar Relay events faced vendor fallout and cancelation threats over unpaid invoices, while construction companies sued over unpaid contractor fees on studio builds.

Debt, Tax Liens, and the Founders’ Struggle

As documented by investigations from Hybrid Fitness Media, FitLab became entangled in mounting financial and legal distress:

1. Federal Tax Liens: The IRS filed multiple federal tax liens against FitLab dating back to unpaid payroll taxes (IRS Form 941).
2. High-Cost Lending: To stay afloat, the company took out high-interest Merchant Cash Advances (MCAs) and defaulted on multiple multi-million-dollar promissory notes.
3. Lawsuits & Missed Payroll: Studio staff, fitness influencers, construction vendors, and early investors filed claims or reported chronic delays in basic biweekly payroll.

The Core Takeaway

The roll-up playbook—leveraging cheap debt to buy distinct, culture-driven fitness brands and centralizing back-office operations—repeatedly underestimates how personal boutique fitness is. FitLab treated beloved community-centric brands like balance sheet line items, losing the trust of the very creators, coaches, and members that gave those brands value in the first place.