Peloton co-founder and former CEO John Foley went from billionaire to bankrupt after losing his job, telling the New York Post that he was forced to sell his home and most of his possessions to make ends meet.
“You know, at one point I had a lot of money on paper. Unfortunately, I didn’t actually have it (in the bank). I lost all my money. I’ve had to sell pretty much everything in my life,” Foley told The Post.
At the start of the coronavirus pandemic, sales of Peloton’s treadmills and exercise bikes soared as lockdowns kept people indoors. The company was valued at $50 billion and has invested heavily in expansion.
Its success was short-lived, as the company was hit by bad publicity due to injuries, deaths, and product recalls. At the same time, demand for its pricey bikes and treadmills took a hit as lockdowns were lifted and people began exercising outdoors again.
Peloton later received further negative publicity when Mr. Big died of a heart attack while riding a Peloton bike during the premiere of the Sex and the City reboot.
“We were coming out of the COVID crisis, the stock was plummeting, there were leaks (telling the press about planned layoffs), there was stock activists,” he recalled, before writing a letter to the board asking for Foley’s firing. “Then this Mr. Big thing happened… it was brutal.”
Foley was forced to step down as CEO in February 2022. Once worth nearly $2 billion, Foley now finds himself out of work and with just $225 million in the bank.
He was forced to sell his $55 million waterfront home in East Hampton and cut back on his lavish lifestyle for himself and his family.
“My family has taken it well. My wife has been super supportive. I think it’s going to be better for our kids if we’re being authentic,” Foley said.
But Foley didn’t stick around for long: He’s started a custom rug company called Ernesta, which he hopes can capitalize on his early success with the Peloton.
“I’m working hard to make money again… because I don’t have much left,” he joked. “So I’m hungry and humble.”
