Precor Closing North Carolina Plant, Laying Off 123 People

Precor, a subsidiary of Peloton, has announced the closure of its production plant in Whitsett, North Carolina, which will take effect on October 31st. The company began laying off workers on March 9th, affecting 123 people, 60 of whom were in general production or were assembly technicians. Precor opened the 236,000-square-foot plant in 2010 after closing its plant in Valencia, California. The plant primarily produced commercial strength equipment.

A spokesperson from Precor shared a statement acknowledging the impact of the decision and expressing the company’s goal of strengthening operations and meeting customers’ needs. Club Industry reached out to Precor to learn about the impact on its plant in Woodinville, Washington, and whether layoffs occurred outside the Whitsett plant.

In February, Peloton confirmed that it planned to sell Precor, which it acquired in 2021 for $420 million. However, after failing to secure the desired price, Peloton decided to invest in Precor and operate it as a stand-alone subsidiary. On February 14th, Peloton appointed Dustin Grosz as CEO of Precor, with the goal of returning the brand to generating positive free cash flow. Grosz has over 30 years of experience in the fitness industry and has held several leadership positions in the past, including at Core Health & Fitness, Star Trac, and Nautilus Inc.

In a letter to customers, Grosz expressed confidence in the company’s ability to streamline manufacturing and supply chain processes, leading to increased efficiency and better business practices. The story will be updated if Club Industry receives a response from Precor about the impact of the closure on other plants.