Peloton Interactive Inc. said late Monday that it has accepted the resignations of co-founders John Foley and Hisao Kushi, the latest leadership shake-up to hit the troubled interactive fitness company.
Foley stepped down as Peloton’s chief executive in early February and had continued as the board’s executive chair. His resignation is effective immediately, Peloton
PTON,
said.
“Now it is time for me to start a new professional chapter,” Foley said in a statement. “I have passion for building companies and creating great teams, and I am excited to do that again in a new space,” he said, without further details.
Kushi, Peloton’s chief legal officer, will resign effective Oct. 3, the company said.
Foley co-founded Peloton in 2012 with Kushi and three others and is credited with using his tech and business experience to build the company into a dominant interactive fitness platform. He was Peloton’s CEO for a decade.
Peloton’s board appointed Karen Boone, a former executive at home goods and furniture retailer RH
RH,
as its next chair.
Shares of Peloton fell 1.4% in the extended session Monday after ending the regular trading day up 7.2%. So far this year, the stock has dropped 69%, compared with losses of around 14% for the S&P 500 index
SPX,
Kushi has served as the company’s top lawyer since 2015. Peloton said that Tammy Albarrán will replace him as chief legal officer and corporate secretary.
Albarrán most recently was Uber Technologies Inc.’s
UBER,
chief deputy general counsel and deputy corporate secretary.
Peloton Chief Executive Barry McCarthy thanked both departing executives for “their shared vision, dedication and passion for Peloton.”
“Through their hard work, they have given the world the connected fitness industry and created a platform that empowers each of us to be the best version of ourselves,” McCarthy said.
Peloton is likely to report fiscal first-quarter results in early November, with analysts polled by FactSet expecting a loss of 64 cents a share on sales of $639 million. That would compare with a loss of $1.25 a share on sales of $805 million in the year-ago period.
Peloton in August posted a sharp loss for its fiscal fourth quarter, with McCarthy saying in a letter to investors at the time that despite declining revenue and other ills, Peloton had made “significant progress driving our comeback and Peloton’s long-term resilience.”
