The former CEO of Peloton has revealed that he has “lost all his money” and has been forced to sell his holdings.
As Americans stayed home during Covid lockdowns, Peloton bikes became a hot luxury item. Sales increased 250 percent in the first quarter of 2020, and the company’s stock rose 400 percent over the course of the year.
But as lockdown measures eased, Peloton fell out of favor, wiping out much of its former billionaire founder’s wealth in the process.
And then came a shocking story on the 2021 Sex and the City reboot that caused the company’s stock to fall even further.
“I’ve lost all my money. I’ve had to sell almost everything in my life,” said John Foley, co-founder of Peloton in 2012. He told the New York Post.
Former CEO John Foley co-founded Peloton in 2012, but left in February 2022
“You know, there was a time when I had a lot of paper money,” the businessman lamented.
“Not really (at the bank), unfortunately,” he explained.
Foley was worth $1.9 billion at Peloton’s peak, but his personal fortune shrank to $225 million when he stepped down as CEO in February 2022, according to Bloomberg.
Foley’s overnight billionaire status was lost in November 2021, but things took a turn for the worse just before Christmas that year.
The first episode of the Sex and the City reboot, And Just Like That, featured a storyline in which one of the main characters, Mr. Big, suffers a heart attack while riding his Peloton.
“We were coming out of the COVID crisis. Stocks were plummeting. And then the worst happened… it was brutal,” Foley recalled.
“We really thought we were doing something special for the world. We really care about our members. We care about our shareholders, we care about our employees.
“And suddenly, we were under attack… everything was falling apart,” he said.
Peloton laid off another 400 employees earlier this summer and has continued to close its physical stores in an effort to cut costs.
Foley has been forced to cut back on spending, including selling his $55 million oceanfront property in East Hampton.
“My family took it well,” the 53-year-old told the Post. “My wife is very supportive. My kids probably feel better about it, realistically.”
Peloton’s reputation took a hit after the first episode of And Just Like That aired
Peloton bikes became a highly sought-after luxury product during pandemic lockdowns
The company has now closed many of its physical stores to cut costs.
Foley’s new venture is a carpet company called Ernesta, with which he hopes to revive his fortunes.
“I’m working hard so I can try to make money again… because I don’t have much left,” he said.
Adding: “So I am hungry and humble.”
Peloton is still trying to regain its pandemic-era luster, but it lost another CEO in May, just two years after his appointment.
Despite recent sales increases, its market capitalization now stands at $1.8 billion, down more than 90 percent from its 2021 highs.