The Leisure Media Company Ltd
The Leisure Media Company Ltd
The Leisure Media Company Ltd
Leisure Opportunities
Job search
Job Search
see all jobs
Latest job opportunities
Everyone Active
Competitive rates of pay
South Oxhey Leisure Centre, Watford
Warrington Borough Council
£46,464 - £49,497pa + excellent benefits package
Warrington, Cheshire
Harrow School
£29,500pa + pension + benefits
Harrow, London
Active Luton
£30,027pa + non-contrib pension + benefits
Stockwood Park, Luton
University of Brighton
£23,144 to £25,138pa
Brighton, East Sussex

Peloton considers de-listing to draw a line under pandemic challenges

Peloton is considering de-listing from the stock exchange
Company is in talks with private equity houses
Rumours of de-listing led to a share bounceback
Company's borrowings are also being restructured
Job opportunities
University of Brighton
£23,144 to £25,138pa
location: Brighton, East Sussex, United Kingdom
more jobs

Peloton Interactive Inc is believed to be working to get its costs under control in a bid to align with the expectations of private equity investors as it considers de-listing.

The company’s rollercoaster ride from a valuation of around US$50 billion at the height of the pandemic to a US$1.3 billion valuation today has been well documented, as has its recent decision to restructure, close retail outlets and shed 400 staff – around 15 per cent of the workforce.

The move is as part of a plan to reduce its outgoings by US$200 million this year that will also see cuts to marketing, research and development, IT, and software.

The departure last week of CEO Barry McCarthy led shares to fall 16 per cent cent – even before this drop, they were down 47 per cent this year – however, a story published by CNCB addressing the delisting rumours saw this trend reverse, as the company enjoyed an 18 per cent increase in share value.

In addition to exploring a private equity sale, Peloton is also restructuring its borrowings in partnership with a group of banks, including JP Morgan Chase and Goldman Sachs. It had around US$1.7 billion of debt as at the end of Q1 this year, made up of a US$692 million term loan and US$991 million in senior notes, which fall due in February 2026.

In spite of its financial woes, Peloton is a substantial company in the sector by any measure, generating revenues of US$717.7 million in its fiscal third quarter alone and with 3.06 million connected fitness subscribers, placing it among the biggest fitness businesses globally. It’s predicting sales of around US$2.68 billion for the current financial year and says it will have around 2.96 million subscribers at year-end.

Apart from unrealistic post-pandemic growth expectations, Peloton’s biggest challenges have been a bewildering sequence of pivots and a series of recalls as a result of accidents – some of them fatal.

Pivots have included buying Precor for its manufacturing capacity, shutting this capacity down and outsourcing it, veering from a hardware to a software focus and from consumer to B2B – announcing partnerships with Hilton Hotels and Hyatt, for example – as it has tried to find new direction and sales volumes.

Accidents and recalls have included the death of a child on a treadmill and insider trading accusations which led to a legal action being brought against senior executives, with this court action still ongoing.

If private equity investors can see a way to revive Peloton’s fortunes by cutting costs and leverage potential that’s locked up in the business, it may be better off away from the glare of the public markets as it works to rebuild value.

Sign up for FREE ezines, news alerts & magazines
Related news

TikTok enters the fitness market and announces Peloton tie-up

05 Jan 2024
TikTok, has launched into the fitness market with a new hub called #TikTokFitness and a ...

Lululemon dumps Mirror and signs up with Peloton for digital content – shares jump on the news

28 Sep 2023
The share price of Peloton has jumped after it signed a deal to become the ...

Peloton relaunches its corporate offering as Peloton for Business – reveals year end financials

18 Aug 2023
Peloton, which announced a major rebrand in May is also relaunching into the B2B market ...
Peloton Interactive Inc is believed to be working to get its costs under control in a bid to align with the expectations of private equity investors as it considers de-listing.
HAF,FIT,IND,PTS,TEC
2024/THUMB353180_222215_369752.jpg

More News

1 - 15 of 67,934
24 May 2024
Evian Spa, the spa and wellness brand inspired by the premium mineral water brand, has arrived in Doha, marking its inaugural Middle Eastern location and ... More
23 May 2024
A new nature-inspired wellness destination called Align is coming to Tucson, spearheaded by brothers and local hospitality entrepreneurs Mark and Eric Erman. Designed to foster ... More
22 May 2024
Leisure Media has added another heavyweight to its line-up of CEOs for its inaugural HCM Summit this October. Dean Kowarski will talk about the intersection ... More
21 May 2024
Modern US wellness brand The Well has promoted Zeev Sharon, formerly VP of real estate, to chief development officer. Sharon will oversee its global expansion ... More
21 May 2024
Empowered Brands has signed a deal with European staffless gym chain, Fit+, to be the master franchisor in the UK and Ireland. More than 200 ... More
04 May 2024
British spa and skincare giant Elemis is making an entrance into London's retail scene, picking Covent Garden's Seven Dials for its inaugural standalone store. Now ... More
21 May 2024
Live action video game experience Chaos Karts has launched in a 15,000sq ft arena in Al Quoz, Dubai. Chaos Karts is the brainchild of Tom ... More
21 May 2024
Twenty-five cameras, nine servers, 70 projectors and a range of AV technologies are being used to bring the art of Van Gogh to life in ... More
21 May 2024
A study has found that the use of cinematic and video editing techniques can drastically increase the aesthetic appeal and user engagement of virtual reality ... More
21 May 2024
Speaking to HCM for its 2024-2025 Handbook, which will be out next month, PureGym managing director, Rebecca Passmore, says the company is on track to ... More
20 May 2024
QC New York, a luxury Italian day spa on Governors Island, will expand its offering this July by adding an extra 15,000sq ft of space. ... More
20 May 2024
Leisure, lifestyle, wellness and entertainment growth investor, Imbiba, has invested in boutique gym brand, 1Rebel's holding company, One Rebel Ltd, after closing a £90 million ... More
20 May 2024
Urban Gym Group will launch PILAT3S at ClubSportive in Amsterdam next month, to create a boutique-in-gym experience. PILAT3S is the newly-launched Reformer Pilates concept from ... More
20 May 2024
The American Council on Exercise has appointed Dr Cedric Bryant as its new CEO. Bryant takes up the new position on 1 July, following on ... More
17 May 2024
The Global Wellness Institute (GWI) has released promising new research on the wellness real estate market at its third-annual Wellness Real Estate & Communities Symposium ... More
1 - 15 of 67,934
The Leisure Media Company Ltd
The Leisure Media Company Ltd