Blackwells Capital asks Peloton to Consider a Sale

Activist investor Blackwells Capital has repeated its push for Peloton Interactive to consider a sale, saying that the company has not made much progress under its new CEO Barry McCarthy.

The investor said  McCarthy, who took over in February, hasn't made any major changes, and the former CEO and his allies still dominate the company known for its affiliated training courses. Peloton has said that it appreciates its shareholders’ views and is acting in investors’ best interest. 

Peloton is one of several companies that has skyrocketed because pandemic-related habits have stimulated a large amount of demand, and is currently struggling as people are returning back to their normal routines.

Its shares have fallen 30% since Barry McCarthy has been appointed as the CEO of the company and are down 80% from a year ago. Its sales soared during the pandemic making the company profitable. But with people returning back to normal routines and supply issues have caused the company’s value to fall.

The CEO Barry McCarthy has said that investors with 70% of voting shares of the company, including John Foley, have agreed to put off any discussion about selling the company.