AM: What are the roles and responsibilities that you guys have?
RH: While I was away from TRX, as you may or may not know, I developed a company called OutFit that I’m the CEO of. But as we started talking about this (acquisition of TRX) from the beginning, we knew that I couldn’t be the CEO.
I’m an entrepreneur and I love building things. Even towards the end, when I was selling control, TRX was getting to be of a size that I am really passionate about creating. I think what was ideal about the situation was that I was able to say "Jack, we’re going to have to find a CEO for this." Initially, his response was, "We’ll go hire the best CEO we can find, and we'll bring them in." Then as I worked with Jack a little bit, I got to understand him and the way in which he works, and frankly, the talent that he can bring into something. I started pestering him and said, "I don't think we should hire an outside CEO. I think you should do it." His initial response was that he wasn’t doing that. I told him that if he wanted to be a really great control owner, to do that, you have to at least take a couple of years and run it. This way you’re not some smart-ass running things from the cheap seats and asking why the spreadsheet doesn’t match to the reality of how things are. He said that wasn't what he does, but eventually myself and Jack reached out to one of our board members who he can tell you about. Jack told him that I was pushing this crazy idea, and he wanted to know what he thought. Turns out, he joined me in ganging up on Jack to become the CEO for however long he chooses to do so. I have to tell you, as a guy that would tell you that this is not what he does, I'm learning every day from him about best practices on running businesses. I'm really pleased! I don't know whether I'm an Executive Chairman, but I'm way more than a guy sitting out there and coming to a boardroom. I am someone who goes to Jack with my true and honest perspective.
JD: That is the true story. Randy put me in this position. I certainly agree and support those statements. When I decided to acquire the company, I wasn’t thinking of running the company. That’s clear, but Randy and I are very much partners in running this business. Now, he is right. As we were getting closer to thinking about who the best person in the world would be to run the company, he came to me and said that I should do it. He told me I have an intensity issue and would probably kill anyone else in that seat, and I probably do have that. Then a board member and close friend, Mark Fields, who was the CEO of Ford for many years and has also been the CEO of Hertz and runs major companies around the world, and I agreed that I would come in as the CEO and that any one of the three of us can fire me at any moment if I'm not performing or if we find someone better. That was the deal that we had going in. Having now been in this seat going on the third month, I’m having a blast! It really is the perfect position for me. I was in the warehouse running a forklift on Saturday. I was doing an inventory count with the team, and I spent time in the UK with our sales team for our European business arms. I’m getting to know everybody in the company much deeper than I would have otherwise, and I’m having a blast. I’ve been on the phone with our certified trainers worldwide, and I’m really getting to know the ecosystem. We have a summit coming up in Massachusetts in early December that Randy and I will be part of. From my perspective, it has turned out to be a perfect position, and I’m really excited about that. There’s an activation energy that comes, even at this stage in my career, from taking on a role like this.
Randy is the vision, direction, and spiritual leader of the industry and the company, and he’s actively involved in all of the major decisions that we’re making as a company. I’m building the team and making the trains run on time. We work together a lot. I talk with Randy multiple times a day. We're buddies, so that makes it easy. Randy's partner, Jill, on the other hand, probably wants me to talk to him a little bit less, but we're having a great time doing this. We're building this team and we're all on this mission of what we want from this company, and I have to tell you it's fun and exciting.
RH: The one other thing I will add is that by structuring it this way, we’re able to move fast, which is such an asset. Normally, if you think about how it would work, a CEO would be separate, and you have these board members, and there’s this whole series of delays and a lot of inefficiency that comes from having the CEO constantly having to put everything together for board approvals, which takes up a ton of time. For us, we're able to pull our team together quickly with a couple of board members and make quick decisions. This is a critical position to be in, coming into a business that was struggling and trying to turn it around rapidly. What you're going to see over the next 12-18 months just couldn't happen in a different structure at this kind of pace. I have been really happy. It was something that I didn't really anticipate, but it has worked out really great.
JD: The point Randy is making, which is worth noting, the team that has come together is a combination of OGs and NGs within the TRX community. We have OGs like Randy and Rick Cusick who came in as our Chief Revenue Officer after exiting the business in 2019/2020 and brought a great perspective. Our senior management team is really extraordinary. I mentioned that Mark Fields is on our board. Frank McGuigan, who is also on our board, is one of the most recognized senior leaders in global supply chain. If you look at the management team, our CFO was Revlon's former CFO for eight years, Doug Greeff, who also ran Global Leverage Finance for Citigroup. He's an extraordinary finance executive who is on this mission with us. Quincy Carroll, who I mentioned earlier, is the CTO and, a friend of Randy’s, has known this business for a long time and is very close with him. Our VP and General Counsel, Alain Villeneuve was TRX's litigation attorney for 12 years. When we came together to acquire the company, he came to us and said that he wanted to be on the team. He wanted to be in-house and on this mission with us. We’re about to announce the new head of Supply Chain. An 11-year Senior Executive at Nike, who was at Nautilus six years before that and provides great start up experience as well. World class talent is here.
I did not acquire this business to flip it. I want to build this over the next couple of decades to take something that is very special and make it even better. We have this great team around us that is making it possible to do that, and these are just some of the names.
AM: That’s fantastic! Looking into next year, what is the vision of TRX as a brand, its projects and new products?
RH: We have a bunch of cool, innovative new products that are in the pipeline that I was part of before the dark days came and I went away. Fortunately, that group couldn’t figure out how to get those things to market. There are some really interesting new products that are new takes on training modalities like elastic resistance, which is something that I am really interested in. I think that it is something that has been under-leveraged, and there is a real opportunity to leverage there. Our products are pretty damn smart, but we’re interested in making them smarter. I think there is a way to do things we have been doing, but make them better, faster, more efficiently and more profitably. TRX will never do some crappy commodity product, just because we can. We want to speak to premium and quality, and have items that speak to deliberate and smart approaches. If we can’t do that and wrap it in amazing content, then we shouldn’t do it.
JD: We’re completely on the same page. From our perspective, now that we are two months into the acquisition, and having a retooled senior management team, we’re really focused on getting back to basics as a first step which won’t be as exciting to you, but it’s really important to us. Getting back to basics is critical and understanding what we do now, what we do well...how we do everything well...in a first-class way and improving the foundation. Obviously, the business has been up and running for a long time now. So focusing on those basics is key, such as making supply chain a competitive advantage rather than focusing on just getting product out the door.
Those are the things we’re doing. On the new product side, Randy has a bag of magic tricks, and the trainers in our ecosystem do as well. As we get through this period of focusing on what we do today, we’re going to look for competitive advantages through improving the products we have and through the development of new products as well. Things like expanding the functional training product line is a natural thing to do. Working to ensure that the services within the TRX Training Club work hand-in-hand with the products is critically important. Then it’s about looping back to a connected system. Everyone is looking for more feedback and more information. They want to have that connected experience and bio feedback. We have lots of places that we can grow through new services and new products that collectively create a complete system where you’re not only working out, but it’s being tracked and, you’re getting feedback in real time, so you’re able to compare yourself day over day, month over month and year over year. It’s like anything else, when you’re getting ready to compete in a sport, get your body in excellent shape. Get your cardio and your strenth up. Get your agility where it needs to be, and then you get into the ring ready to do battle. What we’re doing now is getting our cardio up and getting our strength and our agility up, and then we’re going to pick our spots to see what rings we’re going into, where we're going to do battle, and we're going to do all that in a very deliberate way. We have the expectation that it's coming and we'll need to be a little patient while we work on our core health. But then watch us as we start coming up with these new tools, equipment, and capabilities for our customers, while we simultaneously activate our ecosystem. There are people all around the world that are excited about the brand!
If you have not tried the TRX Training Club, Jack and Randy are giving our readers 90 days free to try it out for yourself!
You'll have access to an all-in-one virtual gym built for everybody, everywhere, every level. When you move with TRX, there’s no limit to how far you can go.
You will have unlimited access to 500+ on demand workouts, new on demand workouts added weekly, unlimited access to daily LIVE classes and unlimited access to daily REPLAY classes.
Simply visit www.trxtraining.com/athleisuremag, no credit card required!
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PHOTO COURTESY | TRX
Read the NOV ISSUE #83 of Athleisure Mag and see FORGING AHEAD WITH TRX | Randy Hetrick + Jack Daly in mag.