Precor, Peloton’s Commercial Division, Appoints Interim CEO
While there has been speculation that Peloton has considered selling Precor, the mingling of hotel and wellness tourism with commercial fitness equipment can be a fruitful endeavor
Peloton has reportedly appointed an interim CEO, Dustin Grosz, for Precor while it searches for a permanent executive leader for its commercial division. Grosz, former Core Health President, will fill the position until an official CEO is appointed.
The LinkedIn profile of interim Precor CEO describes him as a fitness industry executive, entrepreneur, turnaround specialist, coach, and fitness enthusiast. He was recognized for his new interim position on the networking site, receiving a congratulations from a Purchasing Manager at Nautilus Inc.
Peloton acquired Precor, a Seattle-based commercial cardio and weight machine manufacturer, at the close of 2020 for $420 million in order to establish a US manufacturing channel in light of the pandemic and meet demand.
Peloton’s CEO, Barry McCarthy, announced over the summer that the connected fitness company would shift to third-party manufacturing in an effort to streamline its supply chain and cost structure, both of which were key priorities at the time. Peloton said that it would close its own manufacturing operations while expanding its partnership with Taiwanese manufacturer Rexon Industrial Corporation.
There has been speculation that Peloton has considered selling Precor, and when asked about the commercial fitness manufacturing arm during an August Q4 2022 earnings call, Peloton executives didn’t have much to reveal.
“We’re continuing to assess our strategy for Precor, and it’s been helpful for us as we’ve been building our Peloton commercial business,” said Liz Coddington, Peloton CFO, on the earnings call. “But with all the other things that we’re working on, all of our supply chain work, the FAAS work that we’ve been doing, Precor hasn’t — the focus on Precor hasn’t been our highest priority area. And we don’t have we don’t have much else to share at this point.”
However, Peloton Commercial has aided the connected fitness brand to push into a new realm: the hotel industry.
Peloton announced a partnership with Hilton Hotels earlier this fall, signaling its move into the hotel and wellness tourism space. The collaboration promised signature Peloton Bikes in all 5,400 Hilton hotels across the United States by the end of the year, with Hilton being the first hospitality brand to feature Peloton.
Betsy Webb, who is leaving her position as Vice President of Peloton Commercial in the coming year, told CNBC at the time of the Hilton announcement that her first experience with Peloton was during a hotel stay while on vacation – and that she was immediately hooked.
Webb’s departure from Peloton Commercial follows other notable and recent exits, including Peloton’s cofounders, its Head of Marketing, and a CFO shake–up.
