Shares of New York-based Peloton Interactive Inc. sunk more than 10% to $86.91 after the recall was announced Wednesday, its second biggest percentage decline.
Peloton is best known for its stationary bikes, but it introduced treadmills about three years ago. Sales of Peloton equipment have soared during the pandemic as virus-weary people avoid gyms and workout at home. In the last three months of 2020, the company brought in $1 billion in revenue, more than double what it made the year before.
In all, Peloton said it received 72 reports of adults, kids, pets or other items, such as exercise balls, being pulled under the treadmill. Of those reports, 29 were of children who suffered injuries, including broken bones and cuts. One child, who was 6 years old, died.
Those who own the treadmill have until Nov. 6, 2022, to get a full refund from Peloton. For those that want to keep the treadmill, Peloton said it will move it free of charge to a room where children or pets cannot access it and update the software so a passcode is required to unlock it.
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