Peloton CEO denies reports about production halting
The indoor trainer company is firing back
Peloton’s CEO, John Foley denied that the company is halting production of bikes and treadmills following shares tanked 27 per cent on Thursday. John Foley, the co-founder of the popular exercise company, was in damage control mode as he said the rumours that the company had seen a “significant reduction” were untrue. I
“Rumors that we are halting all production of bikes and treads are false,” Foley said, in a statement.
The statement followed news that Peloton executives were selling off their stock in the company, CNBC Business reports. Between Foley, the company’s CEO and co-founder, and several other board members and company insiders cashed out on $500 million in stock.
After this week’s crash, Peloton is trading at a new year low of $29. Most executive and board sales, which occurred throughout the fall of 2021, took place when it was trading over $110.
It’s been a helluva ride for the company the past year. Peloton closed out 2021 with a very unwanted cameo on Sex and the City’s reboot, And Just Like That. The brand responded quickly with its own PR spin, featuring Canadian actor Ryan Reynolds. Then the ad, which was not the first time Reynolds had stepped into Peloton’s world, was subsequently pulled as Chris Noth became embroiled in his own controversy. That dizzying sequence was far from the first bump in the road for the brand that took off during the early days of the pandemic.
Peloton also issued a recall of its Tread+ machine following a tragic incident in the U.S. Before that, the brand drew the internet’s ire for its cringe-worthy “scared Peloton woman” holiday ad campaign.
In the statement, Foley added that the company had experienced leaks this week “containing confidential information that have led to a flurry of speculative articles in the press.”
He also said the news in the press was “incomplete, out of context and not reflective of Peloton’s strategy.” Foley also suggested that they identified the person who leaked the information and the company will be taking legal action against them.
