Peloton isn’t the only at-home fitness company facing major financial dilemmas — so is rival iFIT Health and Fitness, which sells NordicTrack products.
One of the company’s lenders, Pamplona Capital Management, filed a lawsuit against iFIT over an agreement iFIT made with a China-based manufacturer, according to The New York Post. The reported $300 million lawsuit could cause the company to file for bankruptcy.
- The lawsuit comes shortly after the company canceled an IPO which could have raised around $650 million.
- Like Peloton — whose struggles were partially due to a drop in demand for at-home fitness — iFIT is reportedly hemorrhaging money.
From Good To Bad
Just a few short months ago, when the company had filed for an IPO, things were looking up for iFIT — or at least they appeared to be.
In the fiscal year 2021, iFIT generated $1.7 billion in revenue, a major bump from the previous year, when the brand garnered $851.7 million. It had even expanded its portfolio, acquiring Sweat and 29029.
Previous trips to court haven’t sunk the company, either. iFIT has been embroiled in several lawsuits over the past couple of years, being sued by and countersuing Peloton.