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Peloton recalls treadmills


In April, the fitness equipment manufacturer indignantly rejected a warning from the authorities, but now Peloton is recalling its treadmills in the USA - because children can be pulled under the rollers.

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Photo: Jeff Chiu / AP

The fitness equipment supplier Peloton, a big winner of the Corona crisis, is recalling both models of its treadmills after a series of accidents.

It is explosive that in mid-April the company initially rejected a warning from the US consumer protection agency CPSC about its treadmills.

Now Peloton boss John Foley called the contradiction a mistake and apologized.

In Germany, Peloton does not sell the treadmills, but restricts itself to its training bikes.

Peloton shares fell more than ten percent at times in early US trading on Wednesday.

The $ 4,000 Tread + model hit the headlines back in March when news broke of the death of a child.

The CPSC reported 39 incidents a few weeks later and warned that children could be pulled under the back roller of the treadmill and crushed.

With the somewhat cheaper Tread model, the screen could break off and injure the user, warned Peloton and the CPSC.

Rapid growth thanks to Corona

The company is also threatened with a wave of lawsuits.

A number of law firms are already rounding up clients for mass proceedings, and according to media reports, the first class actions have already been filed in US courts.

In addition to affected customers, law firms are also calling on shareholders to participate in the proceedings in order to sue for compensation for price losses allegedly caused by the security deficiencies.

Peloton had grown rapidly in the corona pandemic due to closed gyms and cracked the one billion dollar mark in sales in the Christmas quarter.

The company even couldn't keep up with the deliveries and took 100 million dollars in hand in order to reduce the "unacceptable" waiting times with faster transport by plane and ship.

beb / Reuters

Source: spiegel

All business articles on 2021-05-06

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