Ex-billionaire John Foley reveals he lost everything after leaving Peloton

John Foley is candidly discussing the financial fallout he experienced after stepping down as CEO of Peloton, the fitness company he co-founded in 2012. Once a billionaire, Foley’s situation changed dramatically as he faced harsh realities following his exit.

Speaking to the New York Post, Foley revealed the extent of his financial difficulties. “You know, at one point I had a lot of money on paper,” he admitted. “Not actually [in the bank], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life.” This statement underscores the stark contrast between his financial standing at the height of Peloton’s success and the struggles he now faces.

Peloton experienced explosive growth during the pandemic, as demand for connected fitness equipment surged. However, as COVID-19 restrictions eased and gyms reopened, the company miscalculated the transition and saw a decline in sales. Subsequently, Foley made significant life changes, including selling his Manhattan townhouse and an estate in East Hampton.

Despite these challenges, Foley noted that his family has been supportive throughout this journey. “My family took it well,” he mentioned. “My wife’s super supportive. My kids are probably better for it, if we’re keeping it real.” This positive outlook reveals his determination to remain hopeful during trying times.

Since leaving Peloton, Foley has ventured into a new business endeavor—a direct-to-consumer rug company called Ernesta. He launched this venture with two other Peloton co-founders, Hisao Kushi and Yony Feng. “I’m working hard so that I can try to make money again … because I don’t have much left,” Foley shared, adding that he is feeling “hungry and humble” as he strives toward financial recovery.

In the wake of Foley’s departure, Peloton has undergone significant management changes. Barry McCarthy briefly took over as CEO, and the company is currently being led by two interim co-CEOs. These changes come after a tumultuous period for Peloton, marked by a major stock slump, job cuts, and a significant product recall.

The company’s fourth-quarter earnings report indicated promising signs of improvement in its turnaround efforts, suggesting that the leadership changes may be positively impacting Peloton’s recovery strategy. However, the road ahead remains challenging as the company navigates its way out of a difficult period.

Foley’s story serves as a reminder of the volatility of business and the unpredictable nature of success. His candid reflections about losing his wealth and the challenges of starting anew resonate with many who have faced setbacks in their careers. As he re-enters the entrepreneurial world, Foley exemplifies resilience and determination in the face of adversity.

The saga of John Foley and Peloton highlights not only the individual struggles of a once-successful CEO but also the broader challenges facing many businesses as they adapt to changing consumer behaviors and market conditions. Whether Foley can reclaim his prior success remains to be seen, but his journey is far from over.

As Peloton continues to chart a new course with its restructured leadership, it will be interesting to see how both the company and Foley evolve in the coming months.

Source: New York Post