The Rise and Fall of John Foley: Inside the Rollercoaster Journey of Peloton’s Former CEO
Join us as we explore the extraordinary rise and dramatic fall of John Foley, the former CEO of Peloton. Once at the helm of a company whose stock soared during the pandemic as home workouts surged, Foley saw Peloton’s value plummet as gyms reopened. Discover the risky decisions he made in an attempt to navigate the shifting landscape, and how these choices ultimately led to his downfall.
Now, starting from scratch, Foley’s journey is a powerful reminder of the volatility of success and the ever-present risk of failure. This compelling story of ambition, risk, and resilience is one you won’t want to miss.
Peloton co-founder John Foley revealed that he nearly lost all his money after leaving the exercise equipment company in 2022.
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Former CEO Reveals Brief Billionaire Status: Wealth Was Tied to Company
In a candid interview with the New York Post, the former CEO shared the story of his fleeting time as a billionaire. The former CEO opened up about how his stint as a billionaire was short lived as his wealth was mainly tied to the company.
“You know, at one point I had a lot of money on paper. Not actually […], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life,” the 52-year-old told the outlet.
In 2023, Foley sold his Hamptons house for $51 million, at a $4 million loss and earlier this year he sold a Manhattan Townhouse for $35.5 Million, according to the Wall Street Journal
Former Peloton CEO Shifts Focus to Home Décor with New Venture, Ernesta
Since stepping down, John Foley has channeled his energy into launching Ernesta, a New York-based home décor company specializing in custom and tailored rugs sold online.
Foley has brought several former Peloton executives on board to help drive the company’s growth.
According to a report by the New York Post, Foley is optimistic about Ernesta’s future, aiming for the business to achieve a free cash flow of $500 million by the end of the decade.
Former Peloton CEO Foley Jokes About Financial Recovery: “I Don’t Have Much Left”
“I’m working hard so that I can try to make money again… because I don’t have much left,” Foley said jokingly.
John Foley, Co-Founder of Peloton, Now Leads Ernesta with Fellow Co-Founder Hisao Kushi
John Foley first pitched the idea for Peloton, the interactive exercise bike company, in 2011 and co-founded it the following year with Hisao Kushi, who now serves as Chief Legal Officer at Foley’s new venture, Ernesta.
Peloton experienced a dramatic rise in 2020, as pandemic lockdowns shuttered gyms and sparked a surge in demand for home workout solutions. During this period, Peloton shares skyrocketed by over 400%, solidifying its dominance in the home exercise market.
However, as COVID-19 vaccines were distributed to the masses in 2021, the company’s stock declined and in 2022, nearly 2,800 Peloton employees lost their jobs.
That February, Foley stepped down as CEO and he had exited his executive role entirely by September.
Peloton Leadership Changes: Barry McCarthy Resigns as CEO, Interim Co-CEOs Take Over
After Barry McCarthy, former CFO of Spotify and Netflix, took on the role of Peloton’s CEO, he led the company until his resignation this past May. In the wake of his departure, Peloton Chairperson Karen Boone and Director Chris Bruzzo have stepped in as Interim Co-CEOs, overseeing the company’s operations during this transitional period.
John Foley Optimistic About the Future: Raises $25 Million for New Venture Ernesta
Despite stepping down from Peloton, John Foley remains confident that his “best days” are still ahead. Following his departure, Foley secured $25 million in funding from venture capitalists for his new venture, Ernesta, a home décor company based in New York, according to the New York Post.
Despite a shaky few years, he optimistic about heading toward an upward trajectory with Ernesta. Foley told the Post that the company’s location in New York has created plenty of opportunity due to “dinner parties with diverse, dynamic conversation” adding that the Big Apple is the best place to “get to the top of the hill.”
“I think, potentially, the best days of John Foley are ahead of me,” he said.
“I love a good underdog story.”
This story was originally featured on Fortune.com
