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: