Former Peloton CEO John Foley has disclosed that he has lost his entire fortune after stepping away from the company he co-founded.

Foley's financial downturn comes in the wake of his departure from Peloton, a company that once soared to a $50 billion valuation during the pandemic but subsequently started bleeding cash, as Fox Business reports.

Having co-founded Peloton in 2012, Foley witnessed the company’s rapid rise as lockdowns around the world fueled an unprecedented demand for at-home fitness solutions. The company's growth peaked during the height of the COVID-19 pandemic when people were confined to their homes and turned to Peloton’s interactive exercise platform.

However, as restrictions eased and people returned to their pre-pandemic routines, Peloton faced significant challenges. The company struggled with declining demand, and it encountered public relations issues that further impacted its market position. These challenges eventually led Foley to step down as CEO in February 2022, followed by his resignation as executive chair in September of the same year.

Foley’s New Venture in Rug Industry

Despite the setbacks, Foley did not remain idle for long. By the end of 2022, he managed to raise $25 million for his new venture, Ernesta, a New York City-based company specializing in made-to-order rugs. Ernesta represents a significant shift from Foley’s previous focus on the fitness industry, but it is one that he approaches with optimism.

Foley’s financial struggles have been profound. He has lost much of his wealth and has been forced to sell most of his possessions, including a $55 million oceanfront estate in East Hampton. The dramatic change in his financial circumstances has led him to downsize his living arrangements twice, though he still spends his summer weekends in the Hamptons.

Optimism forFuture Despite Setbacks

Despite the financial hardships, Foley remains hopeful about his future with Ernesta. He believes the company has the potential to generate up to $500 million in free cash flow by the end of the decade, a goal that could mark a significant comeback for the once-billionaire entrepreneur.

Foley’s confidence in his new venture is shared by several former Peloton executives who have joined him at Ernesta. Their decision to follow him into this new industry suggests a strong belief in Foley’s leadership and the potential success of the company.

A Personal Reflection On Financial Losses

In a candid reflection on his financial losses, Foley has spoken openly about the challenges he has faced since leaving Peloton.

“Oh, I’m an open book. You know, at one point I had a lot of money on paper. Not actually [in the bank], unfortunately. I’ve lost all my money. I’ve had to sell almost everything in my life,” he said, highlighting the extent of his financial decline.

Foley’s family has been supportive throughout this challenging period. He noted that his wife has been particularly understanding, and he believes that his children are likely better off as a result of these experiences.

“My family took it well. My wife’s super supportive. My kids are probably better for it, if we’re keeping it real,” Foley added.

The Road Ahead For John Foley

Looking forward, Foley remains optimistic about the possibilities that lie ahead. He has expressed a renewed sense of determination and drive, stating, “I’m working hard so that I can try to make money again… because I don’t have much left. And so I’m hungry and humble.”

Foley’s journey from being a billionaire on paper to starting over with a new venture is one he views as an opportunity for growth. He believes that his best days may still be ahead of him, fueled by the lessons he has learned from his past experiences.

“I think, potentially, the best days of John Foley are ahead of me. I love a good underdog story,” Foley remarked, encapsulating his outlook on the future.

Conclusion: Foley’s Unwavering Determination

John Foley’s story is a testament to the unpredictable nature of business and the resilience required to navigate its ups and downs.

From co-founding Peloton and witnessing its meteoric rise, to experiencing significant financial loss and starting anew with Ernesta, Foley’s journey is one of both triumph and adversity.

Despite losing his fortune, Foley remains undeterred, channeling his efforts into a new venture that he believes has the potential to succeed. As Foley looks to the future, his optimism and determination suggest that his story is far from over.