John Foley, former CEO of Peloton, has started another company. Foley, along with Yony Feng and Yony Kushi, are launching a direct to-consumer custom rug company called Ernesta.
Foley will be Ernesta’s CEO, Kushi will be Chief Legal Officer and Feng will be Chief Technology Officer. A press release was issued by the company with further details.
Global carpet and rug sales are expected to exceed $120 billion by 2031. The current market is fragmented with specialty retailers, mass retailers and designers as well as warehouses. Ernesta will expand the custom category in the multibillion dollar domestic rug market. It will offer residential and commercial buyers the opportunity to choose from a carefully curated selection of rugs that are cut to their specific space. Ernesta’s agile and on-demand manufacturing means that customers who have been waiting for their home decor items for months can get them quickly fulfilled.
According to the release they have already raised $25 million in funding.
Read also: The cooperation between Peloton and United Healthcare is developing further
Foley gave an exclusive interview to Forbes. He explained that he has been dreaming about starting a company like this since childhood.
Foley stated that while he was still the CEO of Peloton, no one accepted to help him fund the business. Foley was adamant about Ernesta’s success after he resigned as CEO in February and executive chairman in September. Foley stated, “I was trying to sit on the shore for a week, and I was thinking about that, because I couldn’t help myself.” “I’m hungry, humbled, and have the time to run this company.”
Forbes reports Ernesta will offer 50 different styles of machine-made custom-cut rugs in five color options. Their prices are expected to be within the reach of West Elm and CB2 and sales will begin in early 2023.
It’s not surprising that Foley intends to take much of the success story of Peloton on his next venture. However, there will be key differences. According for Forbes:
Foley stated that he hopes to restore some of the success that helped Peloton become a market leader by focusing on the community and culture surrounding its rug designs and the purchasing experience. Ernesta will not attempt vertical integration of its supply chain. The company will instead work with Georgia-based business-to-business partners to source carpet rolls in bulk and then have them cut to order in New Jersey. They will then be shipped directly or through logistic partners. Foley claimed Ernesta can achieve 50% gross margins by avoiding storefronts and sourcing in the U.S. Foley also stated that Ernesta will be able to ship its first order directly or through logistics partners.
Foley was removed as CEO in February 2022. then resigned from Peloton Board in September 2022.
Read also: 11 Best Peloton Heart Rate Monitors (undated regularly)
Read also: 7 Best Peloton shoes of the year (Updated Regularly)
Find out more about all the Peloton instructors and how they can help you get fit.
Leave a Reply