Recent headlines about Traeger layoffs, facility closures, and an exit from direct-to-consumer sales have raised a simple but important question: is Traeger going out of business?
The short answer is no — but the longer answer is more complicated. Traeger is going through a significant restructuring, and the details matter whether you are a current owner, a potential buyer, or just someone trying to make sense of the news.
This article covers what is actually happening, what has changed for customers, and what risks are still worth watching.
Traeger Is Not Going Out of Business — But It Is Changing How It Operates
To be clear: Traeger has not filed for bankruptcy. There has been no formal shutdown announcement. The company continues to manufacture grills and pellets and sell them through major retail channels.
What is happening is a restructuring — and that is a meaningful distinction. Restructuring means a company is changing how it operates to cut costs and improve performance. It is not the same as liquidation or closing down.
Think of it like a restaurant that stops serving lunch, reduces its staff, and renegotiates its rent. It is still open for dinner. It has not shut down — it has adjusted to survive.
Traeger trades publicly on the New York Stock Exchange under the ticker COOK and remains operational based on its 2025 annual report and restructuring filings.
What Traeger’s Restructuring Plan Actually Involves
Traeger announced a formal restructuring plan following a weak second quarter. The plan includes layoffs, at least one facility closure, and several significant operational changes.
Ending Costco Roadshows
One of the more visible changes is the decision to end Costco roadshow demonstrations by the end of the year. These in-store demo booths were a signature part of Traeger’s marketing strategy, but they came with considerable cost. Ending them — along with halting direct-to-consumer sales on its website — is expected to generate approximately $20 million in Phase 2 savings.
Worker Lawsuit
The layoffs have not gone unchallenged. According to Utah Public Radio, dozens of workers have joined a lawsuit related to the layoffs and restructuring. It is important to note that this lawsuit involves allegations that remain unresolved — no court ruling has been issued. Reporting the lawsuit as fact is accurate; treating it as a proven legal finding is not.
These changes reflect a cost-reduction strategy. They are not signs that the company is winding down operations.
Traeger Has Exited Direct-to-Consumer Sales — Here Is What That Means for Buyers
This part of the story has caused the most confusion. Traeger has stopped selling grills directly through its own website. Instead, it is sending customers to retail partners to complete purchases.
For the average buyer, the practical change is simple: you will no longer check out on Traeger’s website. You will instead buy from retailers like Costco, Home Depot, Lowe’s, Ace Hardware, or Amazon.
The product still exists. The grills are still being made. The only thing that has changed is where you click “buy.”
What About Costco?
The Costco situation is worth clarifying. Traeger is ending its in-store roadshow demo booths at Costco — but Traeger grills will still be available on Costco shelves. You may not see the demo salesperson anymore, but the product will still be there.
Exiting direct-to-consumer sales reduces overhead significantly. It also eliminates the cost of acquiring customers through digital advertising on Traeger’s own platform. Many well-established brands sell exclusively through retail and operate without issue. This move is a strategic shift, not a sign of collapse.
Traeger’s Financial Position — Real Losses, but Still Generating Revenue
It would not be accurate to say Traeger’s finances are healthy. They are not. But the picture is more nuanced than the headlines suggest.
Net Losses and Accumulated Deficit
Traeger reported a net loss of $115.2 million in 2025 and carries an accumulated deficit of $804.1 million as of year-end. The company has not reported a profitable year since going public.
Net losses from 2022 through 2025 were $382.1 million, $84.4 million, $34.0 million, and $115.2 million respectively. Large goodwill impairments — $222.3 million in 2022 and $74.7 million in 2025 — contributed heavily to the figures in those years.
Debt Load
The company carries approximately $403 million in debt against a declining revenue trend. Think of it like a household managing a large mortgage and credit card balance while income has dropped. It is manageable under the right conditions, but it leaves little room for error.
Restructuring, in this context, is the equivalent of cutting discretionary spending and adjusting the budget to keep up with obligations.
Revenue and EBITDA Still Positive
Here is where the picture gets more balanced. Despite the losses, Traeger’s updated 2025 guidance projects total revenue of $540 million to $555 million, a gross margin of 40.5% to 41.5%, and adjusted EBITDA of $66 million to $73 million.
Those are not the numbers of a company on the verge of shutting down. They reflect a business still selling significant volume and generating positive operating earnings before certain expenses. The losses are real, but so is the revenue.
S&P’s Credit Outlook — What “Negative” Actually Means
S&P Global Ratings recently revised Traeger’s credit outlook from stable to negative, while affirming its ‘B-‘ rating. The revision was tied to increased exposure to tariff-related headwinds.
A B- rating with a negative outlook is a signal of elevated risk — not a declaration of default. Think of it like a student who is still passing but has slipping grades. Teachers are concerned and may lower the grade if things do not improve. It is a warning, not an expulsion.
For investors, this means the company is viewed as a higher-risk borrower. For customers, it is a data point worth knowing — but it does not mean the business is about to close.
Should You Buy a Traeger Grill Right Now?
This is one of the most common questions people have when they find this kind of news. Here is a practical way to think about it.
On one side: Traeger is a well-known brand with broad retail distribution, hundreds of millions in annual revenue, and an active restructuring plan aimed at stabilizing operations. Products remain available at major retailers. The brand is not disappearing from shelves.
On the other side: the company carries significant debt, has not turned a profit as a public company, and faces a tougher credit environment. S&P’s revised outlook reflects real uncertainty ahead.
If you are considering a purchase, it is reasonable to check current warranty terms directly with Traeger or your retailer before buying. Warranty support is typically handled by the manufacturer regardless of which channel you bought through — but confirming that detail is always good practice when a company is in transition.
For more coverage of business developments like this one, InPageBusiness tracks restructuring news, financial shifts, and what they mean for consumers and investors.
How to Tell the Difference Between Restructuring and Shutdown
Layoffs, facility closures, and strategy pivots tend to trigger “going out of business” speculation. That speculation is understandable — but it is not always accurate.
Here is a simple way to distinguish the two:
- Restructuring: The company changes how it operates — cutting costs, closing underperforming units, shifting sales channels — while continuing to trade.
- Going out of business: The company files for bankruptcy, enters liquidation, or formally ceases operations. None of these apply to Traeger currently.
The best sources to check are SEC filings — specifically the 10-K annual report, 10-Q quarterly reports, and 8-K event disclosures. These filings are public and provide far more reliable information than social media speculation.
What to Watch Going Forward
Traeger’s situation is not resolved. The restructuring is still underway, and several factors will shape how the next year unfolds.
Key things to monitor include:
- Whether the cost savings from ending roadshows and DTC sales improve the bottom line
- How tariff-related pressures affect margins and pricing
- Any further SEC filings, rating changes, or guidance updates
- Progress — or escalation — of the worker lawsuit
- Whether revenue holds steady or continues declining
Management is clearly taking active steps to reduce costs and refocus the business on profitable channels. Whether those steps are enough depends on how the broader market and operating environment develop.
The Bottom Line
Traeger is not going out of business. It is restructuring — and those are two very different things.
The company faces real financial pressure: persistent losses, significant debt, a downgraded credit outlook, and a business model that required meaningful changes. Those concerns are legitimate and worth understanding.
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