Peloton CEO Says Company Has Crashed So Hard He's Had to Sell Almost All His Possessions

"I've lost all my money."

Riches to Rags

There aren't a lot of people who'd say they're nostalgic for the years of the COVID-19 pandemic, but you can probably count John Foley, the now-former head honcho at Peloton, as one of them.

Peloton, a manufacturer of high-tech exercise equipment, was initially a huge winner of the pandemic economy, when millions of people suddenly needed a way to work out without leaving the house. In 2020, sales climbed by over 170 percent, while its valuation skyrocketed from around $8 billion to nearly $50 billion by the year's end.

But that windfall didn't last — and Foley, who became a billionaire off that rapid success, left Peloton in 2022 as a considerably less-rich man, amidst plunging sales and a tanking stock position at the company.

"You know, at one point I had a lot of money on paper," Foley told the New York Post. "Not actually [in the bank], unfortunately. I've lost all my money. I've had to sell almost everything in my life."

Waning Wealth

According to Bloomberg, by the time Foley fully exited the company in September 2022 — he had stepped down as CEO in February but stayed on as a board member — a staggering 87 percent of his wealth had evaporated.

In numbers, he went from a peak personal fortune of $1.9 billion, to what was last reported as around $225 million.

Going from billionaire to centi-millionaire comes with some tough lifestyle changes — like having to sell your $55 million waterfront mansion in East Hampton, Long Island.

These days, Foley is chasing success again with a new venture, Ernesta, a made-to-order rug company.

"I'm working hard so that I can try to make money again... because I don't have much left," Foley joked, per the NY Post. "And so I'm hungry and humble."

Crashing Out

Peloton's troubles started when the pandemic began to ease up later in 2021. Heading into the year, the company banked on its meteoric momentum to continue, investing $400 million in a new factory and hiring thousands of more employees.

That proved to be a mistake. The big wake-up call came in November, when Peloton's first-quarter earnings direly forecasted sales to be $1 billion short of what was projected just three months earlier. With investors thoroughly spooked, Peloton's shares immediately plunged by 35 percent in a single day.

From there, bad PR twisted the knife. Its flagship treadmill killed a child and caused dozens of injuries. Recalls ensued. TV shows depicted characters dying while using Peloton bikes, in one case resulting in a drop in Peloton's stock.

By 2022, its new factory was on the chopping block, and so were thousands of employees, who after being ruthlessly laid off were insultingly compensated with free Peloton memberships.

It's since continued to get flak for slimy practices. Just this month, customers were enraged to hear its plans to charge a $95 activation fee for people that bought one of its bikes secondhand.

So all that being said, with Peloton now trading at less than five bucks a share and its market cap stooping at measly $1.8 billion: couldn't have happened to a nicer company!

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