Peloton co-founder John Foley disclosed that he almost lost all his wealth after departing from the exercise equipment company in 2022.
In an interview with the New York Post, the former CEO shared how his status as a billionaire was fleeting, as his wealth was predominantly linked to the company.
“At one time, I had considerable wealth on paper, but unfortunately, not in my bank account,” the 52-year-old revealed. “I’ve lost all my money and had to sell nearly everything I owned.”
According to the Wall Street Journal, Foley sold a Manhattan townhouse for $35.5 million earlier this year after losing $4 million on the sale of his Hamptons home in 2023.
Since leaving, Foley has focused his energies on founding Ernesta, a home décor business in New York that offers personalized and custom rugs for sale online. He’s brought on board a number of former Peloton executives for the project, which he thinks will generate $500 million in free cash flow by the end of the decade, according to the Post…
“I’m working hard to try to make money again… because I don’t have much left,” Foley said with a hint of humor.
Foley co-founded Peloton in 2012.
Foley initially pitched the interactive exercise bike concept in 2011 and co-founded Peloton the following year with Hisao Kushi, who now serves as Ernesta’s Chief Legal Officer.
In 2020, Peloton experienced a significant surge in popularity as pandemic lockdowns shut down gyms, leading to a spike in demand for home workout solutions. The company’s shares skyrocketed by over 400% as Peloton established itself as a leader in the home exercise market.
However, the company’s price fell in 2022 as COVID-19 vaccines were made widely available, and over 2,800 Peloton employees lost their jobs. Foley left his position as CEO in February of that year, and by September, he had completely stopped working as an executive.
Barry McCarthy, a former CFO for Spotify and Netflix, was appointed CEO until he resigned in May of this year. Currently serving as temporary co-CEOs are Peloton Director Chris Bruzzo and Chairperson Karen Boone.
Foley says ‘best days’ are ahead.
According to the New York Post, after he left, Foley raised $25 million for Ernesta from venture capitalists.
He was confident that his relationship with Ernesta would improve despite a rough few years. According to Foley, who told the Post that the Big Apple is the ideal place to “get to the top of the hill,” the company’s position in New York has created lots of opportunities because of “dinner parties with diverse, dynamic conversation.”
