A person walks past a store in Coral Gables.
A person familiar with the matter said that an activist is pushing for a sale of the company as its share price has plummeted.
A person with knowledge of the situation said that the person believes that Peloton could be an attractive acquisition target for larger technology or fitness-oriented companies.
The Covid-19 pandemic weakened the Peloton. A person who requested anonymity to speak on the private matter said that the firm places a lot of the blame on CEO John Foley.
Peloton didn't comment. A person for Blackwells didn't respond to CNBC's request for comment. A request for comment was not returned.
According to a proxy filing, the insiders have super-voting Class B shares that give them control over 80% of the voting power. It would take a lot of pressure from other shareholders to make a change at the company.
The initial public offering price of $29 was the price that the stock is now trading at. The company has a market cap of $8 billion. A year ago, the market value of the company was over $50 billion.
CNBC reported last week that Peloton is working with McKinsey to find ways to cut costs. According to CNBC, the company is planning to temporarily pause production of its bikes and treadmills, on a staggered schedule, to help reset inventory levels. On Thursday, the shares of Peloton plummeted more than 20%.
In a memo to workers, Foley said that it wasn't true. He said that the company had to right-size its inventory. He said that Peloton is considering job cuts in order to be more flexible.
The company reported preliminary second-quarter revenue of $1.14 billion and ended the quarter with over two million subscribers.
The second-quarter figures show that the company is taking corrective actions to improve its profitability outlook.
The person said that Blackwells is critical of the inconsistent pricing and manufacturing strategies of Peloton.
At the end of this month, Peloton will begin charging customers hundreds of dollars more in setup and delivery fees, blaming historic inflation and heightened supply chain expenses. The price of the bike was slashed by 20% last year.
The Wall Street Journal reported on the news.
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