Activist investor wants Peloton to fire its CEO and explore options to sell the company: report
- Blackwells Capital LLC is calling on
Pelotonto fire its CEO and explore options to sell the company.
- This is after a significant slump in Peloton stock, when shares plunged a whopping 24% on Thursday.
According to The WSJ, Blackwells still sees Peloton as a good product that could potentially be acquired by a larger tech or fitness company.
The WSJ cited sources who said that Peloton had weakened significantly since its
Blackwells has a less than 5% stake in Peloton, per The WSJ.
Peloton's shares slumped 24% on Thursday, following news reports that the company might be putting a pause on producing more stationary bikes due to a lack of sales. The company's growth slowed over the course of the pandemic as customers became more comfortable with the idea of going back to gyms. This pushed the company to cut the price of its entry-level bike by $400 in August.
The company grappled with multiple issues over the last year, including reports of a death and several injuries from customers using the company's treadmills. In December, the "Sex and the City" reboot, "And Just Like That," featured main character Carrie Bradshaw's husband Mr. Big suffering a heart attack after a vigorous workout on his Peloton bike.
The company has also had to deal with the fallout from a leaked audio recording, in which execs appeared to discuss plans to lay off 41% of the company's sales and marketing teams and slash headcounts in its e-commerce and retail divisions. According to a CNBC report, management consultancy firm McKinsey has been brought on board to handle Peloton's job cuts.
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