Landlord Cadogan Estates Ltd has asked UK courts to close the London-based arm of Equinox Holdings Inc.’s SoulCycle, with the luxury gym chain still struggling to recover in the aftermath of Covid restrictions.
(Bloomberg) — Landlord Cadogan Estates Ltd has asked UK courts to close the London-based arm of Equinox Holdings Inc.’s SoulCycle, with the luxury gym chain still struggling to recover in the aftermath of Covid restrictions.
The property investor, controlled by the family of the Earl of Cadogan, made a winding-up petition against SoulCycle London Ltd this month, according to official records. The petition, which asks a court to liquidate companies at the behest of a creditor, will be brought before a London court on April 26, Judge Sally Barber said in a court hearing Wednesday.
“Whilst we are disappointed by the landlord’s decision to file this petition, we understand this is a matter of procedure,” SoulCycle wrote in an emailed statement. “Despite the challenges presented by the Covid-19 pandemic, we remain committed to serving our riders in the UK and we will continue to try to resolve this issue through negotiation with the landlord.”
The case is related to a SoulCycle studio that was planned on London’s affluent King’s Road, which is part of Cadogan Estates’ portfolio of Chelsea-based properties, the parties told Bloomberg News. The studio’s opening was delayed due to the onset of pandemic lockdowns.
“This is a contractual matter between Cadogan and SoulCycle, we hope to reach a satisfactory settlement between both parties,” said a spokesperson from Cadogan in an emailed statement. The Cadogan family has controlled swathes of property in the Chelsea and Kensington area for centuries.
Bricks-and-mortar fitness outlets face a challenge regaining footfall after the pandemic ushered in a culture of working from home. SoulCycle, which also has London studios in Notting Hill and Soho, was forced to scrap a plan to open a site in Marylebone, according to company filings dated August.
The pace of growth in membership at SoulCycle’s parent company, US-based Equinox, still trails pre-pandemic levels by roughly 10% to 15%, Bloomberg News has reported. S&P Global Ratings said in a March report that the firm may face a liquidity shortfall over the next six months.
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