Lenders to Equinox Holdings Inc. are preparing for talks regarding a potential rescue loan that would help the high-end fitness chain refinance looming debt and avoid bankruptcy, WSJ Pro Bankruptcy reported. A new loan could provide the funding the company needs to bridge the gap until the anticipated widespread distribution of a vaccine for COVID-19 next year, and an eventual return to normalcy for the fitness industry. New York-based Equinox is on the hook for a looming $73 million maturity in February on debt tied to its subsidiary, SoulCycle. The company might also need additional funding to bolster its cash reserves as gym attendance will likely remain thin for months before the vaccine is widely circulated. Talks are in early stages and include professionals representing the company and its lenders, people familiar with the matter said. An Equinox spokeswoman said the company isn’t currently in discussions with lenders.
