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John Foley, the co-founder and former CEO of Peloton, has experienced a remarkable rise and fall, mirroring the trajectory of the company he helped build into a household name. At its peak during the COVID-19 pandemic, Peloton was valued at nearly $50 billion, and Foley himself was a billionaire. However, as pandemic restrictions eased and people returned to gyms, Peloton’s fortunes waned. The company’s overexpansion and high-profile setbacks, such as a controversial depiction in a “Sex and the City" reboot, contributed to a steep decline in its stock value. By the time Foley stepped down as CEO in 2022, Peloton’s market cap had plummeted to under $2 billion.
In a recent interview, Foley candidly discussed the personal financial challenges he has faced since leaving Peloton. He revealed that he lost most of his wealth, forcing him to sell significant assets, including his Manhattan townhouse and an East Hampton estate. Despite these hardships, Foley maintains a positive outlook, attributing much of his resilience to the support of his family.
Foley’s entrepreneurial spirit remains undeterred. He has since embarked on a new venture, Ernesta, a direct-to-consumer rug company that he co-founded with two former Peloton executives. Ernesta, launched in late 2023, aims to revolutionize the custom rug market, much like Peloton did with fitness. Foley’s vision for Ernesta is ambitious, hoping to replicate the success of The Shade Store in the interior design space. Despite his financial losses, Foley is “hungry and humble,” working hard to make Ernesta a success and reclaim his financial stability.
As Peloton continues its efforts to stabilize under new leadership, Foley is focused on his new chapter, bringing the lessons learned from his Peloton experience to Ernesta. Although he has faced significant challenges, Foley believes that his best days are still ahead.
