Struggling home-fitness heavyweight Peloton is running out of cash.
The company on Tuesday reported losing $757 million as its quarterly sales fell 15% from a year before.
Peloton also said its business is now “thinly capitalized” after burning through much of its available moolah. It announced securing a new loan of $750 million to help make ends meet.
While it’s possible Peloton will manage to turn things around, these latest developments come amid reports that the company’s management is looking to sell some or perhaps even all of the business as losses mount.
Amazon is rumored to be a potential buyer, but it’s unclear how attractive Peloton is to the online retail giant as people return to gyms and fitness centers.
Peloton is already warning investors that its prospects don’t look much brighter for the current quarter. “Turnarounds are hard work,” said Chief Executive Barry McCarthy.
Peloton’s stock is down more than 60% so far this year. And down, down it continued to slide Tuesday.