John Foley, co-founder of Peloton, disclosed that he came close to losing all his wealth after departing from the fitness equipment firm in 2022.

In a discussion with the New York Post, the ex-CEO shared that his time as a billionaire was fleeting, as his riches were predominantly linked to the company.

“At one point, I had substantial wealth on paper. Unfortunately, not so much in the bank. I’ve lost all my money and have had to part with nearly everything I owned,” the 52-year-old expressed to the publication.

In 2023, Foley sold his luxury home in the Hamptons for $51 million, incurring a $4 million loss, and earlier this year, he sold a townhouse in Manhattan for $35.5 million, as reported by the Wall Street Journal.

Following his departure, Foley has focused on establishing Ernesta, a home decor business based in New York that specializes in online sales of bespoke rugs. He has brought onboard several ex-Peloton executives for this project, which he believes has the potential to achieve $500 million in free cash flow by the end of the decade, according to the Post.

“I’m putting in hard work to regain my finances. because I don’t have much left,” Foley said with a touch of humor.

Foley co-founded Peloton in 2012

Foley initially presented the concept of the interactive exercise bike in 2011 and co-founded the company the following year with Hisao Kushi, who is now Ernesta’s Chief Legal Officer.

The company saw unprecedented growth in 2020 when pandemic-related lockdowns led many to seek home workout solutions, causing Peloton’s shares to rise over 400%, solidifying its presence in home fitness.

However, as COVID-19 vaccines became widely available in 2021, the share prices dropped, and in 2022, approximately 2,800 employees were laid off. Foley stepped down as CEO that February and completely exited his executive position by September.

Barry McCarthy, former CFO of Spotify and Netflix, took over as CEO but stepped down in May of this year. Currently, Peloton is being managed by Chairperson Karen Boone and Director Chris Bruzzo as Interim Co-CEOs.

Foley optimistic about future prospects

After his exit, Foley successfully raised $25 million from venture capitalists to fund Ernesta, as reported by the New York Post.

Despite recent turbulent times, he remains hopeful about the future of Ernesta. Foley noted that the company’s New York location has offered abundant opportunities fueled by “dinner parties with vibrant, engaging discussions,” claiming that New York is the ideal place to “climb to success.”

“I believe that potentially my best days are still ahead,” he stated. “I love a good underdog story.”