The Blubber

Per CBS News

After multiple previous recalls, Peloton is issuing another one for 2.2 million of its original bikes. The reason behind this recall was that the seat post broke while someone was using the equipment.

The recall also tells customers to stop using the bikes that were included in the recall "immediately." To be specific, customers were warned against the Pelot9on model PL01, which was the subject of the recall.

The issue was that riders were vulnerable to falls or injuries while riding the Peloton due to its seat post assembly. For customers using the Peloton model PL01, the company instructs them to contact Peloton to get a replacement seat post.

The Consumer Product Safety Commission said that so far, there have been 13 injury reports out of the 35 total reports of the seat breaking. Kaitlin Wowak, a University of Notre Dame's Mendoza College of Business associate professor of IT, analytics, and operations, gave a statement about the recalls.

Wowak: "It appears that Peloton may be learning from its past recalls by being more collaborative with the U.S. Consumer Product Safety Commission and responding faster than it had with previous product safety issues, such as its treadmill recall,"

In October, the former CEO of Peloton got repeated margin calls for collateral shares that were once worth $300 million, which were down to $30 million at the time of the report. The former CEO, John Foley, pledged 3.5 million shares, which were once worth $1.4 billion.

Upon stepping down from Peloton, Foley sold $50 million worth of shares.

The boom of Peloton happened during the pandemic when gyms were closed, and more people started to explore healthy alternatives. This was when the company sold many bikes.

With more people working from home, it was reported that a boom in weekday golfing was created. This was because more remote workers had time to golf during the weekday and not just on weekends.

See flow at unusualwhales.com/flow.

Other News:

• Former Peloton CEO Gets Repeat Margin Called for Collateral Shares Once Worth $300M Now Down to $30M
• Working from home has created a boom in weekday golfing

Resources:

CBS News