The president of Peloton’s rival company has thrown his hat into the ring to lead the struggling exercise bike maker after the current president resigned on Thursday.
Lu Renting, who founded and heads privately held Echelon, could do a better job saving Peloton than retiring CEO Barry McCarthy, a former Netflix and Spotify executive who was hired in 2022. he claimed.
“Peloton needs people who know the industry,” Lenteen told the Post. “I run the same company, but it’s smaller and we do the same thing every day, but it’s better with fewer employees and less debt.”
But Lenteen isn’t holding his breath that Peloton’s board will take his offer seriously. The two companies settled a years-long legal battle over patents in 2022. At the time, Mr. McCarthy rejected Lenteen’s proposal to merge the two companies.
“There was a discussion in New York, but he politely declined further discussion,” Lenteen told the Post.
Lenteen said he has no intention of leaving Echelon even if the Peloton board comes calling this time. Instead, the Chattanooga, Tennessee, company’s largest investor said it will make Echelon products available under the Peloton banner.
Peloton did not immediately respond to a request for comment about Lenteen’s desire to lead the company or past discussions about a possible merger.
Peloton, which controls about 75% of the connected fitness industry, has been slow to recover from the height of the pandemic, when locked-down fitness enthusiasts were put on waiting lists for the company’s pricey stationary bikes.
Mr. McCarthy’s resignation was announced at the same time the company announced it would cut 400 jobs as its once-soaring stock price continued to fall. The stock has plunged 46% this year, closing Thursday at $3.14. After peaking at $167 in December 2020, it has continued to decline.
“They constantly publish negative news and are extremely damaging to the industry,” Lenteen said.
McCarthy was tapped to replace Peloton founder John Foley, who made a number of high-profile fiascos, including an ill-fated expansion plan during the pandemic.
This brash executive alienated customers, investors, and employees alike when the company’s bikes were recalled for safety reasons, resulting in the death of a toddler, and the accident was caused by customers not following manufacturer guidelines. Mr. Foley argued that this was the result.
Peloton also has a history of attacking competitors such as SoulCycle, iFIT and Lululemon, a strategy that Foley referred to as a “winner-takes-all” approach, according to court filings.
Echelon had accused Peloton of violating antitrust laws by crushing competitors.
Details of the 2022 settlement have not been made public.
