Peloton recalls faulty seat posts on more than 100,000 bikes in Canada

Peloton bike recall different than Tread+, but sparks bad memories: Simeon Siegel Simeon Siegel, managing director and senior analyst at BMO Capital Markets, joins BNN Bloomberg to discuss his reaction to Peloton's latest recall of 2.2 million exercise bikes. He says that this recall is different than the Tread+ recall in 2021 and the stock is reacting to material churn concerns.

Peloton is recalling the seat posts on more than 100,000 exercise bikes sold in Canada due to the risk of them breaking during use.

Health Canada issued the recall notice on Friday following a similar move in the United States, where more than two million exercise bikes have the faulty seat post.

Consumers are asked to immediately stop using the recalled bikes and to contact Peloton for a free replacement seat post.

The issue affects the seat posts on Peloton bike model PL01. About 108,000 affected bikes were sold in Canada from January 2018 to May 2023.

The recall notice says Peloton has received one reported incident and no reports of injury in Canada as of Thursday.

The issue also has occurred primarily in users taller than 180 centimetres (five-foot-10) and weighing more than 114 kilograms (251 pounds), according to the notice.

In the U.S., Peloton has received 35 reports of the seat post breaking and detaching during use, with 13 reports of injuries including "a fractured wrist, lacerations and bruises," as of Thursday.

The recall notice says after May 16, consumers can contact Peloton toll-free at 833-821-0099 between 6 a.m. and midnight ET, seven days a week, or online at www.onepeloton.ca/replacement/checkout.

Peloton grew in popularity during the COVID-19 pandemic but has struggled financially since.

The New York-based company announced in October that it would eliminate about 500 jobs in what would be its fourth round of layoffs for the year.

Peloton had laid off 12 per cent of its staff at that point, leaving it with nearly 4,000 employees or less than half of what it had during its peak in 2021.

Peloton also said last year it would close its North America distribution network and shift delivery work to third-party providers.

With files from The Associated Press and CNN