Activist investor Blackwells Capital LLC wants exercise equipment maker Peloton Interactive Inc. to fire its chief executive and consider selling itself to a fitness or technology company, two sources familiar with the matter said on Sunday.
The pandemic turned Peloton which offers stationary bikes and treadmills with livestreamed workouts from popular instructors into one of the market's hottest stocks, but the company's stock price has plummeted 84% in the last year.
Peloton is now valued at roughly US$8 billion down from $50 billion at the peak of its popularity roughly a year ago.
Blackwells is blaming John Foley, Peloton's co-founder and chief executive, for strategic missteps including manufacturing strategies that have contributed to the sharp drop in the stock price and now wants the board to replace him, the sources said.
The investment firm, run by Jason Aintabi, is urging Peloton to sell itself to a company like Disney, Apple, Sony or Nike, one of the sources said.
The Wall Street Journal first reported Blackwell's campaign against Peloton.
A representative for Blackwells declined to comment and Peloton did not immediately respond to a request for comment.
Peloton's fortunes have been fading for some time as its customers began shifting away from its classes when gyms reopened and other companies offered rival products.
But the trouble mounted very recently. Last week its stock price tumbled 24%, wiping away $2.5 billion in value, after CNBC reported that Peloton was temporarily halting the production of its bikes and treadmills amid lower demand.
Foley wrote to his employees 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."
The company is scheduled to release earnings on February 8 and Foley said more details would be announced then.
Blackwells has successfully pushed for change at companies including Colony Capital and posted very strong returns during the early part of the pandemic when many activists were nursing losses.
(Reporting by Svea Herbst-Bayliss in Boston and Bhargav Acharya in Bengaluru; Editing by Christopher Cushing and Diane Craft)
Without having seen it, former Bank of Canada governor David Dodge believes that Tuesday's 2024 federal budget from Deputy Prime Minister and Finance Minister Chrystia Freeland is 'likely to be the worst budget' in decades.
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After four years at the University of Connecticut, Edwards was selected sixth overall by the Washington Mystics in the WNBA draft Monday night.
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Horrified worshippers watched online and in person as a bishop was stabbed at the altar during a church service in Sydney on Sunday evening.
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A controversial former school trustee from B.C.'s Fraser Valley who described a political rival as a "strip-tease artist" during an election campaign has been ordered to pay her $45,000 for defamation.
Michael Gordon Jackson, the man on trial after being charged with contravention of a custody order for allegedly abducting his daughter in late 2021 to prevent her from getting a COVID-19 vaccine, called himself to the stand Monday.
Following the Iranian missile and drone strikes against Israel over the weekend, Canada should take the threat of Iran and potential escalation of the conflict seriously, one global affairs analyst says.
A couple who owned a Colorado funeral home where authorities last year discovered 190 decaying bodies were indicted on federal charges that they misspent nearly US$900,000 in pandemic relief funds on vacations, cosmetic surgery, jewelry and other personal expenses, according to court documents unsealed Monday.
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The historic hush-money trial of Donald Trump got underway Monday with the arduous process of selecting a jury to hear the case charging the former U.S. president with falsifying business records in order to stifle stories about his sex life.
The U.S. Supreme Court on Monday let a Republican-backed law in Idaho that criminalizes gender-affirming care for transgender minors broadly take effect after a federal judge blocked it as unconstitutional.
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Without having seen it, former Bank of Canada governor David Dodge believes that Tuesday's 2024 federal budget from Deputy Prime Minister and Finance Minister Chrystia Freeland is 'likely to be the worst budget' in decades.
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Dyson Knight may look like an average college student, but since 2004, he’s actually been a member of the internationally acclaimed Baha Men.
Canadian singer Grimes apologized to fans on Saturday after her Coachella set earlier that evening was beset by technical issues that caused her to scream into the microphone in frustration.
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A high score on a Foo Fighters pinball machine has Edmonton player Dave Formenti on a high.
Celebrity food critic Keith Lee said he was blown away by Toronto, handing a rich ranking to its culinary creators, as the first international stop of his latest food tour.
Even as the cost of living goes up, there are still ways to save some cash when out shopping or using credit cards.
After four years at the University of Connecticut, Edwards was selected sixth overall by the Washington Mystics in the WNBA draft Monday night.
The Indiana Fever selected sharpshooter Caitlin Clark with the first pick of the WNBA Draft on Monday.
The NBA broke all-time regular-season records for total attendance, average attendance and sellouts for the second straight year in 2023-24.
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B.C. resident Robert Conrad spent thousands of hours on Crown land developing an unusual bond with deer.
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Lucas Raymond scored 4:35 into overtime after he scored a game-tying goal with 1:17 left in regulation, lifting the Detroit Red Wings to a 5-4 comeback win over the Montreal Canadiens on Monday night that keeps their playoff hopes alive.
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If you’ve ever felt the allure of Hollywood and wanted to be in a big-budget movie your time to shine is now.
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Regina's Jon Ryan is set to sign a one-day contract with the Seattle Seahawks tomorrow officially bringing to an end his pro-football career.
Cambridge resident Samantha Falkiner explains why something felt "off" about the men who approached her and her neighbours on Friday.
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Friends are raising money for the grieving family of a 16-year-old Saskatoon boy who was killed in a high-speed crash that injured two other teens on Sunday morning.
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The Thunder Bay police chief is acknowledging some residents' eroding trust in the service as his predecessor and other high-ranking members of the force face criminal charges.
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Multiple warnings have been issued about the dangers of coyotes and potential wild dogs following a weekend attack that left one person seriously injured.
When Westdell Development acquired White Oaks Mall last year, President Iyman Meddoui said they always had the vision of adding additional commercial and residential components.
It's been more than two years since Jim Lynne died in a crash along Mosley Street in Wasaga Beach.
A street sign in Barrie, renamed to honour 11-year-old Chase McEachern's legacy after he died in 2006, has gone missing again from an alleyway at the heart of the city's waterfront.
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A new ranking by food delivery platform Uber Eats puts Windsor among the top cities in the province for ordering cannabis.
The family of a Victoria, B.C., woman who was seriously injured in an accident in Thailand is pleading for help as medical bills pile up.
A Vancouver woman whose company duped investors by promising big returns on real-estate deals that would house the homeless has been ordered to pay nearly $626,000 after the British Columbia Securities Commission deemed the operation a Ponzi scheme.
The HMCS Max Bernays made its way into its new home at CFB Esquimalt on Monday after a long journey from Halifax.
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More than 80 residents from a low-income apartment building in Kelowna, B.C., have learned they won't be able to return to their homes for at least another two weeks.
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Lethbridge West MLA Shannon Phillips is calling on the province to reinstate funding for the Lethbridge Elder Abuse Response Network.
If you’re planning to head to the coulees this weekend to enjoy the nice weather, don’t forget to look down.
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The City of Sault Ste. Marie is expecting a busy summer at the Downtown Plaza. City officials say the plaza is coming off a successful first winter season, which saw large crowds gathering at the outdoor rink.
The Soo Greyhounds are the talk of the town, as their second-round matchup in the OHL playoffs touches down in the Sault.
Thunder Bay Police Service held a news conference Monday afternoon to discuss the misconduct investigation that led to criminal charges being laid against the city's former police chief.
A pricing agreement has been reached between crab fishers and seafood processors that will allow for Newfoundland and Labrador's annual crab fishery to get started.
Longliners across Newfoundland and Labrador are tied up once again, as a new protest by the province's fish harvesters threatens to derail the crab fishery for a second straight year.
A unique photo exhibit is putting cameras into the hands of survivors of domestic and sexual violence in Newfoundland and Labrador.
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