Peloton Still Digging Out of Founder Mistakes

A few news items:

  • Laying off 123 Precor employees.
  • Closing the North Carolina facility.
  • Bought it for $420M, what do you want to guess the sale price will be? One-tenth that?
  • Now trying to grow it as a free-standing business. That doesn’t sound good.

Precor they just acquired 3 years ago. My how times have changed:

“It’s no secret that a perpetual surge in demand for Peloton’s products has left the company scrambling to meet demand, particularly given COVID-driven disruptions that have substantially slowed freight from Asia,” said Wedbush analyst James Hardiman in a report Tuesday. “We would assume that Precor’s capacity is far from being fully utilized given a lack of equipment orders from commercial customers.”

Manufacturing Dive Reference:

Article from the time of the acquistion:

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