Peloton Recalls All Treadmills After Dozens Of Injuries, One Death
Exercise equipment maker Peloton is recalling its Tread+ and Tread treadmill machines after dozens of injuries and the death of a child.
Shares of the company slid more than 6% on heavy volume, trading around the $90 handle.
Peloton is advising customers who have already purchased the treadmills to stop using them, contact the company for a full refund, or other qualified remedies.
The US Consumer Product Safety Commission (CPSC) released a statement on the treadmill recall:
“The agreement between CPSC and Peloton is the result of weeks of intense negotiation and effort, culminating in a cooperative agreement that I believe serves the best interests of Peloton and of consumers. I would like to thank the CPSC technical staff who have worked tirelessly to protect consumers and to warn the public. Today we have taken steps to prevent further harm from these two products.”
Three weeks ago, the CPSC released a scathing report over the dangers of Peloton treadmills.
CPSC has said there’s been “70 incidents and one child death” related to the treadmills.
This is a massive reversal by Peloton, who called the CPSC report last month “misleading and inaccurate.”
Peloton Chief Executive Officer John Foley has since said: “Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+.”
“We should have engaged more productively with them from the outset. For that, I apologize. Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety,” Foley said.
We wonder if JPMorgan Chase & Co. analyst Doug Anmuth is still advising clients to buy the Peloton dip?
Wed, 05/05/2021 – 10:32