John Foley, co-founder and former CEO of Peloton, is candidly sharing the financial struggles he has faced since stepping down from the company he helped build. After leading Peloton for a decade, Foley recently spoke with the New York Post about the significant challenges he’s encountered since leaving the connected fitness giant.
“You know, at one point I had a lot of money on paper,” Foley admitted. “Not actually [in the bank], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life.”
Once a billionaire during Peloton’s pandemic-fueled boom, Foley’s fortunes declined sharply as the company overestimated continued demand for its products. As COVID-19 restrictions eased, gyms reopened, and more people returned to outdoor exercise, Peloton’s growth slowed dramatically, leading to financial setbacks for Foley and the company alike.
In the wake of these challenges, Foley made the difficult decision to sell some of his most valuable assets, including a Manhattan townhouse and an East Hampton estate. Despite these losses, Foley remains optimistic about his future and the support he has received from his family. “My family took it well,” he said. “My wife’s super supportive. My kids are probably better for it, if we’re keeping it real.”
Following his departure from Peloton, Foley has embarked on a new entrepreneurial journey, cofounding a direct-to-consumer rug company called Ernesta with two fellow Peloton cofounders, Hisao Kushi and Yony Feng. Despite the financial hardships, Foley is determined to rebuild. “I’m working hard so that I can try to make money again … because I don’t have much left,” he told the Post. “And so I’m hungry and humble.”
Peloton, meanwhile, has continued to navigate its own challenges. Since Foley’s departure, the company has seen leadership changes, with Barry McCarthy taking over as CEO before being succeeded by two interim co-CEOs. Peloton has also faced a significant stock slump, multiple rounds of job cuts, and a massive product recall, all of which have contributed to its ongoing efforts to turn the business around.
Despite these hurdles, Peloton’s recent fourth-quarter earnings report showed some progress in its turnaround strategy, offering a glimmer of hope for the company’s future. For Foley, the journey continues as he works to regain financial stability and build a new chapter of success.