John Foley, co-founder of Peloton, revealed in a recent interview that he nearly lost all his money after leaving the exercise equipment company in 2022. Foley admitted that his wealth was mainly tied to the company and he had to sell almost everything in his life to make ends meet. He sold his Hamptons house for a $4 million loss and a Manhattan townhouse for $35.5 million.
Since his departure from Peloton, Foley has focused his efforts on starting a new home decor company called Ernesta, which sells custom rugs online. He has enlisted former Peloton executives in the venture with the goal of achieving $500 million in free cash flow by the end of the decade.
Foley co-founded Peloton in 2012 and pitched the idea in 2011 with Hisao Kushi, who now serves as Ernesta’s Chief Legal Officer. Peloton experienced a surge in popularity during the COVID-19 pandemic when gyms closed, but the company’s stock declined as vaccines were distributed and nearly 2,800 employees lost their jobs in 2022. Foley stepped down as CEO in February and eventually left his executive role in September.
Despite the challenges he has faced, Foley remains optimistic about the future of Ernesta and believes that his best days are ahead. He raised $25 million from venture capitalists for the new venture and sees plenty of opportunity in New York City for growth. Foley is determined to make a comeback and views his struggles as part of a classic underdog story.
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