Equinox Landlord Claims Gym Defaulted on Rent; Over $1M Owed

By Hadassa Kalatizadeh

Equinox, the giant gym chain, has not been paying its rent in one of its West Village, Manhattan locations. As reported by Crain’s NY, the landlord, a limited liability company tied to Orb Management, says the gym operator has defaulted in its rent payments since March, making only one partial payment of about $135,000 earlier this month. The landlord has filed a lawsuit, alleging that Equinox owes about $1.3 million in back rent at the 421 Hudson Street location. The lawsuit, filed in state Supreme Court in Manhattan, says it expects the tenant to continue defaulting on the rent payments moving forward. Orb Management is requesting the $1.3 million in back rent from Equinox, plus interest and attorneys’ fees, as per the suit.

Equinox’s Hudson Street location is also called Equinox Printing House. Its amenities include a sundeck, a pool deck, a yoga studio, and cycling studio. Despite the City’s entry into phase 4 and phase 5 of reopening after the initial Covid-19 shutdown, gyms did not receive a green light till Aug. 24 when Mayor Bill de Blasio finally announced that gyms may begin reopen on September 2. Even with the reopening, the maximum capacity remains at only one-third, with masks required for all patrons. Group classes and pools were not reopened, and gyms were forced to have ventilation systems that could pass local health inspections.

New York’s efforts to thwart the spread of the coronavirus have kept the gyms shuttered for six months, leaving them in financial wreckage. Equinox was not the only gym chain ailing. As per Crain’s, in September, New York Sports Club’s owner filed for bankruptcy protection due to the lengthy shutdown. Similarly, this year, Gold’s Gym and 24 Hour Fitness also filed for bankruptcy.

Further, for businesses across the board, such lawsuits about rent defaults are becoming more frequent. The landlord for Knotel, the tailored flexible workplace platform, recently filed a lawsuit saying the tenant owes roughly $220,000 in back rent for its space at 307 Fifth Ave. Similarly, the landlord for Ted Baker, the luxury fashion retailer, filed a suit saying the company owes approximately $1 million in back rent for its space at 117 Wooster St in SoHo, for failing to pay rent since April.

Representatives for Equinox and Orb Management did not respond to requests for comment.