Peloton was staring down hundreds of millions in loan payments by November 2025 that could've pushed the company into bankruptcy if it hadn't refinanced.
Now that it has refinanced, Peloton has eased investor concerns about liquidity and has the breathing room it needs to try to turn around its business.The fact that it was able to secure these loans signals investors believe in its ability to rightsize its business and eventually pay them back, restructuring experts told CNBC.
Two of Peloton's largest debt holders, Soros Fund Management and Silver Point Capital, are known to sometimes invest in distressed companies. Following former CEO Barry McCarthy's departure and with two board members, Karen Boone and Chris Bruzzo, now in charge, Peloton needs to decide: is it a content company, like the"They're going to have to make some decisions about which parts of the model are survivable, which parts are not, or things that they can do to advance forward without losing the great brand value that they still currently have, especially with the loyal following that they have," said Scott Stuart,...
"The problem is, they lose money. How do you lose money if you're generating a billion one of recurring gross profit dollars?" said Siegel."Well, you take all of that gross profit and you spend it to try and chase new growth."