Activist investor wants Peloton to fire its CEO and explore options to sell the company: report

• Blackwells Capital LLC is calling on Peloton to fire its CEO and explore options to sell the company.
• This is after a significant slump in Peloton stock, when shares plunged a whopping 24% on Thursday.

Peloton investor Blackwells Capital LLC is pushing the company to fire its chief executive, James Foley, and look into options for selling the company, according to a report from The Wall Street Journal.

According to The WSJ, Blackwells still sees Peloton as a good product that could potentially be acquired by a larger tech or fitness company.

The WSJ cited sources who said that Peloton had weakened significantly since its business boomed at the height of the COVID-19 pandemic. These sources also told The WSJ that Blackwells blames Foley, the company's chairman, for the current business slump.

Blackwells has a less than 5% stake in Peloton, per The WSJ.

Peloton's shares slumped 24% on Thursday, following news reports that the company might be putting a pause on producing more stationary bikes due to a lack of sales. The company's growth slowed over the course of the pandemic as customers became more comfortable with the idea of going back to gyms. This pushed the company to cut the price of its entry-level bike by $400 in August.

Peloton has had a rough month, with news of price hikes and layoffs.

The company grappled with multiple issues over the last year, including reports of a death and several injuries from customers using the company's treadmills. In December, the "Sex and the City" reboot, "And Just Like That," featured main character Carrie Bradshaw's husband Mr. Big suffering a heart attack after a vigorous workout on his Peloton bike.

The company has also had to deal with the fallout from a leaked audio recording, in which execs appeared to discuss plans to lay off 41% of the company's sales and marketing teams and slash headcounts in its e-commerce and retail divisions. According to a CNBC report, management consultancy firm McKinsey has been brought on board to handle Peloton's job cuts.