Peloton co-founder John Foley revealed that he lost almost all of his money after leaving the exercise equipment company in 2022.
In an interview with the New York Post, the former CEO talked about how his stay as a billionaire was short-lived because his wealth was mostly tied to the company.
“You know, at one point I had a lot of money on paper. Unfortunately not in reality (in the bank). I lost all my money. I had to sell almost everything in my life,” the 52-year-old told the outlet.
In 2023, Foley sold his home in the Hamptons for $51 million, at a loss of $4 million, and earlier this year he sold a Manhattan townhouse for $35.5 million, according to the Wall Street Journal.
Since his exit, Foley has focused his efforts on starting New York-based home decor company Ernesta, which sells custom-made rugs online. He has brought several former Peloton executives into the company, which he believes can generate $500 million in free cash flow by the end of the decade, the Post reported.
“I’m working hard so I can try to make money again… because I don’t have much left,” Foley said jokingly.
Foley co-founded Peloton in 2012
Foley introduced the interactive exercise bike company in 2011 and founded it the following year with Hisao Kushi, who now serves as Ernesta’s chief legal officer.
The company experienced a huge boom in 2020 when pandemic lockdowns forced gyms to close and its bikes became attractive to those who wanted to workout at home. Peloton shares rose more than 400% as the company dominated the home workout space.
However, as COVID-19 vaccines were distributed to the masses in 2021, the company’s stock plummeted, and nearly 2,800 Peloton employees lost their jobs in 2022. In February of this year, Foley resigned as CEO and gave up his leadership role entirely in September.
Former Spotify and Netflix CFO Barry McCarthy took over as CEO until he stepped down last May. Peloton Chair Karen Boone and Peloton Director Chris Bruzzo are currently leading the company as interim co-CEOs.
Foley says the “best days” are ahead
After his departure, Foley raised $25 million from venture capitalists for Ernesta, the New York Post reported.
Despite a few rocky years, he’s optimistic that Ernesta is on the up. Foley told the Post that the company’s New York location has created plenty of opportunities because it has “dinner parties with diverse, dynamic conversations,” adding that the Big Apple is the best place to “reach the top.”
“I think John Foley’s best days may still be ahead of me,” he said. “I love a good underdog story.”
