© Reuters. A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton
(Reuters) -Activist investor Blackwells Capital on Monday called on the board of exercise equipment maker Peloton Interactive (NASDAQ:) Inc to remove Chief Executive John Foley and start a sale process.
The investment firm, founded by Jason Aintabi, said Foley is “ill-suited to lead company and must be removed”.
The board should begin the sale process to fully maximize value of Peloton’s brand, team, customer base and technology, Blackwells said in a letter to the company.
Peloton did not immediately respond to a Reuters request for comment.
The letter comes after CNBC reported that Peloton was temporarily halting the production of its bikes and treadmills amid lower demand.
The development caused the stock price of Peloton to tumble 24% on Thursday, wiping of $2.5 billion from its market value.
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