Peloton Investors Move To Sack CEO
Blackwells Capital, an investor in Peloton, is planning to push the company to fire CEO John Foley and pursue a sale, following a series of blunders and bad business moves.
Although Blackwells has a less than 5 per cent stake in the company, it believes that investors would favour a sale to a larger tech or fitness company.
Peloton’s stock has dramatically fallen, down more than 80 per cent from its all-time high. Currently trading at just over $US27, the shares are worth even less than their were during the company’s September 2019 IPO, where they went for $US29 a share.
Peloton recently announced it is pausing its entire production line, due to supply outstripping demand. After CNBN reported on the pause, including a quote from Foley that Peloton is “taking significant corrective actions to improve our profitability outlook and optimise our costs” shares plummeted 24 per cent.
Peloton’s earnings will be released on February 8.