Peloton’s Ex-CEO John Foley Reveals He’s Lost Fortune and Sold Possessions After Company’s Fall
John Foley, the former billionaire CEO and co-founder of Peloton, has revealed that his once substantial wealth has evaporated, forcing him to sell off nearly all his possessions. Foley, who led Peloton from its inception in 2012 through its pandemic-era boom, shared his financial downturn with the New York Post.
Foley’s fortunes soared during the COVID-19 pandemic when Peloton experienced a 250% surge in sales and its stock price skyrocketed by over 400%. This meteoric rise briefly made Foley a billionaire. However, as pandemic restrictions eased and outdoor exercise became more popular, Peloton’s demand waned. The company’s stock subsequently plummeted, wiping out Foley’s financial gains.
Adding to the company’s troubles, the December 2021 episode of And Just Like That…, which featured a character dying on a Peloton bike, exacerbated the negative public perception. Foley recounted the tough period, saying, “We were coming out of Covid. The stock was getting crushed. And then the Mr. Big thing happens…it was brutal.”
By February 2022, Foley stepped down as CEO with his net worth reduced from $1.9 billion to $225 million. Peloton’s market value, once at $50 billion, dwindled to about $1.8 billion, and the company faced a series of challenges, including layoffs and store closures.
Foley was compelled to downsize, selling a $55 million East Hampton home and relocating his family. Despite the financial setback, Foley remains optimistic. He has since launched a new venture, Ernesta, a direct-to-consumer rug company, for which he has raised $25 million. Foley is hopeful that Ernesta will achieve significant financial success, aiming for $500 million in free cash flow by 2030.
Foley’s experience highlights the volatility of wealth tied to stock values and underscores the importance of not basing self-worth on financial assets. Gymshark founder Ben Francis echoed this sentiment, cautioning against defining success solely through net worth.