Peloton's former billionaire CEO says he 'lost all my money' when he left exercise company
Peloton co-founder John Foley revealed that he nearly lost all his money after leaving the exercise equipment company in 2022.
In an interview with the New York Post, the former CEO opened up about how his stint as a billionaire was short lived as his wealth was mainly tied to the company.
"You know, at one point I had a lot of money on paper. Not actually [in the bank], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life," the 52-year-old told the outlet.
In 2023, Foley sold his Hamptons house for $51 million, at a $4 million loss and earlier this year he sold a Manhattan Townhouse for $35.5 Million, according to the Wall Street Journal
Since his exit, Foley has turned his efforts into starting New York-based home décor company Ernesta, which sells custom and tailored rugs online. He's enlisted several former Peloton executives in the venture that he believes can achieve a free cash flow of $500 million by the end of the decade, the Post reported.
"I’m working hard so that I can try to make money again… because I don’t have much left," Foley said jokingly.
Foley co-founded Peloton in 2012
Foley pitched the interactive exercise bike company in 2011, co-founding it the next year alongside Hisao Kushi, who now serves as Ernesta's Chief Legal Officer.
In 2020, the company underwent a massive boom when pandemic lockdowns closed gyms and its bikes appealed to those trying to work out at home. Peloton shares surged more than 400% as it dominated the home exercise space.
However, as COVID-19 vaccines were distributed to the masses in 2021, the company's stock declined and in 2022, nearly 2,800 Peloton employees lost their jobs. That February, Foley stepped down as CEO and he had exited his executive role entirely by September.
Former Spotify and Netflix CFO Barry McCarthy assumed the CEO position until resigning this past May. Peloton Chairperson Karen Boone and Peloton Director Chris Bruzzo currently oversee the company as Interim Co-CEOs.
Foley says 'best days' are ahead
Following his departure, Foley raised $25 million from venture capitalists for Ernesta, the New York Post reported.
Despite a shaky few years, he optimistic about heading toward an upward trajectory with Ernesta. Foley told the Post that the company's location in New York has created plenty of opportunity due to "dinner parties with diverse, dynamic conversation" adding that the Big Apple is the best place to "get to the top of the hill."
"I think, potentially, the best days of John Foley are ahead of me," he said. "I love a good underdog story."
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