Peloton had a tough year. After hiring a new CEO, the company’s latest attempt to reverse its downward spiral is to hire someone to solve one of its biggest problems: supply chain management.
Platoon announced Thursday that Andrew Rendich will join the company as Director of Supply Chain.
Rendich, who takes office next Wednesday, will oversee distribution, IT and member support groups. Rendich joins the fitness business of Grove Collaborative, a home goods and products company, where he was chief operating officer and will remain an advisor. Rendich previously worked with Peloton CEO and President Barry McCarthy at Netflix. Rendich has 30 years of experience in supply chain, operations and customer service.
“Andy deeply understands how to manage and run a subscription model business,” McCarthy said in a statement. “He has always put the customer first while delivering a great experience, a superpower that is at the heart of the Peloton member mentality.”
It’s a key hire for Peloton, which mismanaged its supply of bikes and struggled to meet demand at the start of the pandemic, when closings and closings of gyms forced people to s practice at home. The company acquired commercial gym equipment supplier Precor to bolster its manufacturing capabilities, but then churned out so many bikes that they began to clog warehouses as pandemic-induced orders dwindled.
Rendich steps into his new role as the company is decidedly struggling. The company’s market value fell from $50 billion to less than $8 billion in one year as demand waned. The company temporarily halted production of its bikes in January, laid off 2,800 employees and replaced CEO John Foley with Spotify and Netflix veteran McCarthy. Other executives, including chief operating officer Mariana Garavaglia, chief commercial officer Brad Olson and director of supply chain Jon Adee, have all left the company in recent months.
Rumors had previously swirled that companies such as Nike and Amazon were interested in buying Peloton, which McCarthy called off, saying he didn’t see a sale of the company in “the foreseeable future”.
In an effort to make its bikes more affordable and increase demand, Peloton is working on a new subscription model where customers will get a bike and class membership for between $60 and $100 per month.
Peloton will also promote Shari Eaton from her position as senior vice president of human resources to director of human resources.