Peloton founders leaving in latest shake-up; shares gain
BNN Bloomberg
Peloton Interactive Executive Chairman and co-founder John Foley is stepping down from the fitness company as part of a leadership shake-up, extending the turbulence at a business trying to pull out of a deep slump.
Foley, who helped start Peloton in 2012 and served as chief executive officer for 10 years, is resigning effective Monday, the company said in a statement. Foley took the executive chairman role in February when he handed the reins to CEO Barry McCarthy, a veteran of Spotify Technology SA and Netflix Inc.
Chief Legal Officer Hisao Kushi, another co-founder, is also headed for the exits. He’ll be replaced in that role by Tammy Albarran, who Peloton recruited from Uber Technologies Inc. The chairman role, meanwhile, will be filled by Karen Boone, a former Restoration Hardware executive who currently serves as lead independent director.
Peloton investors initially applauded the changes, sending the shares up as much as 5.3 per cent to US$11.64 in extended trading on Monday. But the rally soon evaporated, with the stock declining more than 2 per cent.
