Peloton Co-Founders Foley, Kushi Step Down From Company Roles

Chairman John Foley and chief legal officer Hisao Kushi are stepping down from Peloton as the down-and-out maker of exercise equipment they both helped to found tries to reshape a business that expanded rapidly and rode the pandemic to heady heights, then crashed under the weight of shareholder expectations as lockdown eased.

The company announced that Restoration Hardware veteran Karen Boone will succeed Foley, while Uber alum Tammy Albarrán is replacing Kushi. Kevin Cornils, the chief commercial officer, is also stepping down as the company looks to execute a turnaround plan that’s placing less emphasis on high-end bike and treadmill sales, looking instead to boost its recurring revenues and appeal to a wider user base.

See also: Why Peloton’s Biggest Problem Isn’t the Hardware

“We founded the company because we wanted to make fitness and wellness convenient, fun, and effective,” Foley, who served as Peloton’s CEO for more than a decade before Barry McCarthy stepped into the role earlier this year. “Because of the work of thousands of people, we’ve done that,” he said, adding that he wanted to “start a new professional chapter.”

PYMNTS wrote recently about Peloton’s recent filing with the Securities and Exchange Commission (SEC), which had new information on an investigation into its Tread+ connected fitness treadmill, which the company recalled and is no longer selling.

Read more: Peloton Updates Recall Regulatory Hangover

The Consumer Product Safety Commission (CPSC) had issued a warning in 2021 about the treadmill. Peloton had said it got reports of injuries related to the product, and so the company began to voluntarily recall the product.

Peloton said the CPSC staff “believes we failed to meet our statutory obligations under the Consumer Product Safety Act and intends to recommend that the CPSC impose civil monetary penalties,” though it thought any fines or penalties could hurt its brand reputation and business.