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Wheels come loose as Peloton loses £81m: Bikes and workouts exploded in popularity during pandemic due to Covid restrictions and gym closures
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The British arm of luxury exercise bike group Peloton posted a loss of £81 million months before the company plunged into crisis last November.
Peloton’s bikes and workouts — with fans like Prime Minister Rishi Sunak and tennis star Venus Williams — exploded in popularity during the pandemic due to Covid restrictions and gym closures.
The American company offers a subscription service that allows users around the world to participate in online classes and has made deals with stars, including singer Beyonce.
Soundtrack: A Series of Peloton Lessons with Songs by Beyonce
But the company – with bike prices starting at £1,350 – struggled to maintain momentum after lockdowns were lifted.
Documents filed with Companies House reveal Peloton Interactive UK nearly tripled turnover to £147 million in the year to June 2021. But costs, including an increase in marketing, resulted in a £81 million loss, compared to a £1 million loss. 50 million in the previous year.
The loss came months before a profit warning from its US-listed parent company last November sent its share price plummeting. Peloton has since laid off staff and reduced costs.
In February, founder John Foley stepped down as chief executive and was replaced by Barry McCarthy, formerly the financial boss of Netflix and Spotify.
In May 2021, Peloton recalled all of its treadmills in the US and UK after a child died when he was dragged under one of the machines.
Shares are down nearly 80 percent this year, making the company worth around £2.3 billion.