In February, Peloton CEO John Foley stepped down as the connected fitness pioneer cut 2,800 jobs. No one could say the news was unexpected. The firm was experiencing dramatic turmoil after flying high from pandemic sales and then falling back down to Earth. Add to that 2021’s massive product recall and you’ve got a rough couple of years for the executive.
But even with former Spotify CFO Barry McCarthy stepping into the role, it seems the company isn’t out of the woods.
“This appointment is the culmination of a months-long succession plan that I’ve been working on with our Board of Directors, and we are thrilled to have found in Barry the perfect leader for the next chapter of Peloton,” Foley said at the time. “I look forward to working with him and invite you to welcome him with open arms.”
A new report from The Wall Street Journal says Pelton is actively courting investors to buy between 15 and 20% of the company in a bid to right the ship. The deal could bring some much-needed cash, as Peloton attempts to regain its footing amid gym reopenings and increased competition. Investment from the right firm could also return confidence that the company is back on the right track. The move would be a decidedly less dramatic one than earlier reports that it’s been looking for an outright sale, courting a buyer with deep pockets like Amazon.
It seems plausible, however, that Peloton’s new leadership is attempting to get the company in a better place to help return some value before a sale. Weeks before he exited the company, Blackwells Capital’s Jason Aintabi called both for Foley to be fired and for the company to explore a sale.
We’ve reached out to Peloton for comment.