Peloton investor calls for fitness tech company to sack its CEO

One of Peloton’s activist investors Blackwells Capital LLC wants the fitness technology company to sack its chief executive John Foley, according to Reuters.

Peloton’s popularity boomed during the pandemic after consumers rushed to purchase stationary exercise bikes and treadmills as gyms were forced to close their doors.

The company’s valuation hit a peak of $50 billion during the heights of the pandemic, however a series of controversies including safety concerns over its Tread+ and the reopening of sports facilities has seen Peloton’s valuation sink to just $8 billion.

Blackwells Capital is blaming the company’s chief executive and co-founder John Foley for the decline and has urged it to sack him and sell itself to a fitness or technology company.

READ MORE: Peloton halts production on its treads and bikes, causing shares to tumble 20%

Blackwells’ chief executive Jason Aintabi wants Peloton to sell itself to a company like Disney, Apple, Sony or Nike, one of Reuters’ sources said.

Peloton’s share price fell 24% last week, which wiped away a further $2.5 billion from its value after a report claiming Peloton was temporarily halting the production of its staple treadmills and bikes to balance the books amid a falling demand.

There were then reports of the company considering sacking a huge section of its underperforming ecommerce team.

Foley wrote to his staff to cool the fears in a letter which said that “layoffs would be the last lever (the company) would ever hope to pull but that it is evaluating the structure and size of the team and that it was “considering all options as part of our efforts to make our business more flexible.”

Peloton’s next earnings report is expected to be released on 8 February and Foley said more details would be revealed then.

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