John Foley’s Wealth Decline After Peloton’s Stock Collapse

John Foley, the co-founder and former CEO of Peloton, has revealed the hardships he faced after stepping down from the exercise equipment company in 2022. In a recent interview, Foley candidly discussed the loss of his wealth, much of which was tied to Peloton’s stock value.

During the height of the COVID-19 pandemic, Peloton experienced a significant boom, with its shares surging over 400%. This surge made Foley a billionaire on paper. However, as the pandemic conditions changed and gyms reopened, Peloton’s stock began to decline sharply. By the end of 2021, Foley’s financial situation had drastically altered.

Foley disclosed that he had to sell many of his possessions after losing nearly all of his wealth, stating, “I’ve lost all my money. I’ve had to sell almost everything in my life.” He sold his East Hampton home for $51 million at a loss of $4 million and his Manhattan townhouse for $35.5 million.

After his departure from Peloton, Foley founded a new home décor business called Ernesta, which specializes in selling custom rugs online. He raised $25 million from venture capitalists to support this venture, which he anticipates could achieve a free cash flow of $500 million by 2030.

Foley’s tenure at Peloton began in 2012, and he served as CEO until February 2022. Following his exit, the company faced numerous challenges, including layoffs and leadership changes, which contributed to its decline in market capitalization.

Despite the financial setbacks, Foley expressed optimism regarding the future of Ernesta and reaffirmed his determination to rebuild his fortune. “I’m working hard so that I can try to make money again…because I don’t have much left,” he remarked.