Peloton Has Not Yet Sold the Peloton Output Park Factory and is Still Looking for a Buyer

Last week’s Q1 2024 earnings call made quite a bit of news, most of which was dominated by the Tread+ returning to market. However, there was also an update on the Peloton Output Park.

As a refresher, Peloton first announced the Peloton Output Park in May 2021. It was intended to be Peloton’s first U.S.-based factory designed to open in 2023. In early 2022 the opening was delayed until 2024; but shortly thereafter Peloton announced they would close the factory entirely (construction had not yet been completed when this announcement was made).. This announcement was made at the same time founder and former CEO John Foley stepped down.

We shared in February that the sale of the Peloton Output Park had been delayed by six months. At the time CEO Barry McCarthy maintained that the sale is an important piece of Peloton’s restructuring phase, which they have been undergoing since early 2022.

Though not mentioned in the Q1 2024 earnings letter to investors, an analyst on the earnings call specifically inquired about the status of the Peloton Output Park, asking:

“And then I have a quick question on Peloton Output Park. You took an impairment of $31 million. Can you give us an update on the work being done on that and what you’re expecting as the outcome? And are you still expecting a sale?”

Peloton Chief Financial Officer (CFO) Liz Coddington responded:

“So, I can take the question on the Peloton Output Park first. In the quarter, we actually took an impairment of only $15 million in this particular quarter. So we are still looking to sell Peloton Output Park. We are talking to a variety of interested parties and, you know, we hope to have a — hope to be able to sell it as soon, but we are still working on that.”

In other words, Peloton has not yet been able to locate a buyer for the Peloton Output Park and is actively looking for a buyer. The Peloton Output Park factory was located in Troy Township in Wood County, Ohio.

For all the news related to Peloton’s most recent earnings call, check out our overview article.

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Katie Weicher
Katie Weicher is a writer for Pelo Buddy. She purchased her Peloton Bike in 2016 and has been riding, strength training, and yoga flowing ever since. You can find her on the leaderboard at #kweich.

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