The British arm of luxury exercise bike group Peloton suffered an £81m loss in the months before the firm hit the crisis last November.
Peloton bikes and workouts – with fans including Prime Minister Rishi Sunak and tennis star Venus Williams – have become incredibly popular during the pandemic due to Covid restrictions and gym closures.
The American company offers a subscription service that allows users from all over the world to join online classes and has signed stars including singer Beyoncé.
Soundtrack: The Peloton Lesson Series features songs by Beyoncé.
But the firm – with bike prices starting at £1,350 – has struggled to maintain momentum once restrictions are lifted.
Documents filed with Companies House show that Peloton Interactive UK’s revenue almost tripled to £147m in the year to June 2021.
But spending, including a scaling up of marketing efforts, resulted in an £81m loss, compared to a £50m loss the previous year.
The loss came months before a profit warning from the US-listed parent last November sent the share price plummeting. Peloton has since laid off staff and cut costs.
In February, founder John Foley stepped down as chief executive and was replaced by Barry McCarthy, former chief financial officer of Netflix and Spotify.
In May 2021, Peloton recalled all of its treadmills in the US and UK after a child died while being dragged under one of the cars.
Shares have fallen nearly 80% this year, leaving the firm worth around £2.3bn.
Credit: www.thisismoney.co.uk /