The boss of a Peloton rival threw his hat within the ring to guide the struggling train bike maker after the corporate’s present chief stepped down Thursday.
Lou Lentine, who based and heads privately held Echelon, claimed he may do a greater job of rescuing Peloton than exiting CEO Barry McCarthy, a former Netflix and Spotify government employed in 2022.
“Peloton wants somebody who is aware of the business,” Lentine instructed The Put up. “I’m operating the identical firm however smaller and we’re doing the identical issues day-after-day however higher with fewer staff and fewer debt.”
Nevertheless, Lentine isn’t holding his breath that Peloton’s board will take his supply severely. The rivals settled a years-long authorized battle over patents in 2022. On the time, McCarthy turned down Lentine’s proposal to merge the 2 firms.
“There was a dialogue in New York and he politely declined further dialogue,” Lentine instructed The Put up.
Even when the Peloton board got here calling this time, Lentine mentioned he wouldn’t stroll away from Echelon. As an alternative, the Chattanooga, Tenn. firm’s largest investor mentioned he would make Echelon merchandise out there below the Peloton banner.
Peloton didn’t instantly reply for remark about Lentine’s need to guide the corporate or previous discussions a couple of potential merger.
Peloton, which controls roughly 75% of the linked health business, has been gradual to get better from its pandemic heights — when locked-down health buffs had been placed on ready lists for the corporate’s expensive stationary bikes.
McCarthy’s departure was introduced together with the corporate saying it’s going to slash 400 jobs as its once-soaring inventory worth continued to crater. Shares have plunged 46% this yr, closing at $3.14 on Thursday — persevering with a downhill trajectory after peaking at $167 in December 2020.
“They’re hurting the business so badly with their fixed adverse information,” Lentine griped.
McCarthy was tapped to interchange Peloton founder John Foley, who made numerous high-profile blunders, together with an ill-fated growth plan throughout the pandemic.
The brash government additionally alienated clients, traders and staff alike when the corporate’s bikes were recalled for safety reasons – and a toddler was killed – and Foley claimed that accidents had been the results of clients not following producers’ tips.
Peloton additionally has a historical past of attacking rivals, together with SoulCycle, iFIT and Lululemon, with Foley allegedly calling the technique a “winner-take-all” method, in accordance with court docket filings.
Echelon had accused Peloton of violating antitrust legal guidelines with its sample of squashing rivals.
Particulars of their 2022 settlement weren’t made public.