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John Foley, the co-founder and former CEO of Peloton, went from being a billionaire to being broke after he lost his job. Foley told the New York Post that he was forced to sell his homes and most of his belongings to make ends meet.
"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," Foley told the Post.
During the early days of the COVID pandemic, sales of Peloton's treadmills and exercise bikes surged as people found themselves stuck at home due to the lockdowns. The company was valued at $50 billion and invested heavily in expanding the company.
The success was short-lived, as bad press from injuries, deaths, and product recalls hammered the company. At the same time, demand for the company's expensive bikes and treadmills took a massive hit as the lockdowns were lifted and people started going outside to exercise again.
Then, Peloton found itself facing even more negative publicity after the premiere episode of the Sex and the City reboot, in which Mr. Big died from a heart attack while riding a Peloton bike.
"We were coming out of COVID. The stock was getting crushed. There was a leaker [who told the press of pending layoffs]. We had an activist in the stock," he recalled, who wrote the board demanding Foley's firing. "And then the Mr. Big thing happens … it was brutal."
Foley was forced to step down as CEO in February 2022. Now, Foley, who was once worth nearly $2 billion, found himself with no job and $225 million in the bank.
He was forced to sell his $55 million East Hampton waterfront home and cut back on his and his family's expensive lifestyle.
"My family took it well. My wife's super supportive. My kids are probably better for it if we're keeping it real," Foley said.
Foley didn't stay down for long, though. He started a made-to-order rug company named Ernesta and is hoping he can channel his early success at Peloton.
"I'm working hard so that I can try to make money again… because I don't have much left," he joked. "And so I'm hungry and humble."