Ex-Peloton billionaire CEO John Foley says he's lost all his money
FILE - John Foley, co-founder and chief executive officer of Peloton Interactive Inc., stands for a photograph during the companys initial public offering (IPO) in front of the Nasdaq MarketSite in New York, on Sept. 26, 2019. Photographer: Michael N
NEW YORK - Two years after his departure from Peloton, former CEO and co-founder John Foley said his fortune has dried up.
Foley co-founded Peloton in 2012 and oversaw its rise to a $50 billion valuation at its peak during the pandemic lockdowns. However, the high-end fitness company struggled after people returned to in-person gyms, and the company went through a series of public relations stumbles.
Foley stepped down as CEO in February 2022 and left his role as executive chair that September. But by the end of 2022, Foley told The New York Post he had raised $25 million from venture capitalists for his new venture, New York City-based Ernesta, a made-to-order rug company.
"Oh I’m an open book," the former billionaire told The New York Post in a new interview. "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."
"I’m working hard so that I can try to make money again… because I don’t have much left," he joked to the outlet. "And so I’m hungry and humble."
Foley said he still spends his summer weekends in the Hamptons, although he has downsized twice, including unloading his $55 million oceanfront estate in East Hampton.
"My family took it well," Foley told The Post. "My wife’s super supportive. My kids are probably better for it, if we’re keeping it real."
RELATED: Which Red Lobster locations are closing now?
Several former Peloton executives have joined Foley at Ernesta, which he believes could make as much as $500 million in free cash flow by the end of the decade. He is optimistic about the future.
"I think, potentially, the best days of John Foley are ahead of me," he told The Post. "I love a good underdog story."