MILAN — After fitness brand Peloton’s dramatic stock market tumble in 2022 and what felt like 90 percent of his own net worth, John Foley turned to the world of interiors.
Prompted by a futile quest for the ideal rug, he decided to found Ernesta, which quickly became the largest custom-sized rug retailer in the United States. In 2025, the firm doubled its sales to $55 million. In March, it revealed it raised $20 million in series B financing led by Addition, with participation from True Ventures and Platform Capital Management.
In an interview, Foley told WWD that Ernesta is on track to becoming the nation’s leading rug brand.
With a facility in northern Georgia and global network of partners, the firm is also rapidly expanding its brick-and-mortar presence as it aims to make custom rugs an essential part of the home. The group aims to scale to 30 showroom locations nationwide by the end of 2027, building on the strong performance of its existing stores in key design markets.
The new investment will also help Ernesta further develop its direct-to-consumer platforms, including enhancements to its Trade Portal, improvements to manufacturing and fabrication technology, and streamlined tools for ordering samples and managing custom projects.
Here, Foley discusses his decision to transition from the world of home workout equipment to home decor.
WWD: What sparked the desire to start Ernesta? Why did you decide to shift gears and enter the home design market?
John Foley: Honestly, even before I started Peloton, I was talking to people about starting a rug company. I’ve always believed that the rug-buying process was broken. The options were limited: You’d find the wrong size, the wrong material, or the wrong color. Or you might find what you want but need to wait months to get it.
WWD: What did you like about the rug business in particular?
J.F.: Rugs are transformative in a home — they make spaces feel complete, enhance sound quality, and create warmth. I wanted to make the custom rug process simple, fast and affordable. Working with high-end designers taught me how amazing custom rugs can be, but I also recognized that not everyone has $20,000 to $30,000 to spend on one rug. The goal with Ernesta was to democratize this experience for mid-career designers and ambitious homeowners of varying income levels.
Ernesta’s Astra rug.
Courtesy of Ernesta
WWD: You mentioned you wanted to scale to 30 showrooms by 2027 (with 10 store openings in 2026), following an opening in Dallas in February. What are the indicators that the market is ready for this sort of growth?
J.F.: Our continued 100 percent year-on-year growth speaks to how much interior designers and ambitious homeowners are appreciating the Ernesta approach.
WWD: You just secured $20 million in series B funding. How are you feeling right now?
J.F.: These rugs are incredible, and I was just so proud of them. I lost most of my money… I lost what felt like 90 percent of my money after Peloton [but now with this raise I am excited to grow something else] it feels like. Also, my family’s still great, my friends are still great, so I’m not complaining.
WWD: How did the idea for rugs come about?
J.F.: My wife and I are ground zero customers for this, and sometimes we can afford working with a designer or sometimes we try to do it ourselves.
I was like, “I have to figure out how to still have great rugs” and I thought, “The company that I want doesn’t exist” and I started it for myself because I want great rugs at affordable prices, and I don’t want to wait nine months. I wanted to have them be designer quality, and I want great selection… Bringing great design to more people who aren’t necessarily the most affluent people is a fun pursuit… because everyone deserves great design.
WWD: How do you plan to utilize this new $20 million investment?
J.F.: We raised this $20 million to open another 15 or 20 stores in the next year-and-a-half. By the end of next year, we’ll be at 30 stores in the U.S. We’re also investing in technology platforms to make the custom rug category more scalable and faster.
Ernesta’s Zahra rug.
Courtesy of Ernesta
WWD: The American consumer is fueling the high-end design industry. More informed and cultured than ever before, they are making more curated choices than ever. What do you think about that phenomenon?
J.F.: For better or worse, I experienced the exact dynamic you’re talking about. When I was in my 30s and early 40s I was trying to find great rugs and it was really hard. And then when Peloton started to go and I started to have some real money, I started to work with great designers and they would just figure out how to get these great rugs, and all of a sudden I thought, “wow, this is living.”
WWD: Prices are wide ranging: as low as $300 with prices for large, premium customizable rugs well into the four- and five-figure range. How is Ernesta affording a wider public access to elevated design rugs?
J.F.: Think about how, for decades, ordering a custom-sized rug would take six to nine months. We’re trying to get those rugs to you in two weeks because we’re vertically integrated. We have a fabrication facility in north Georgia — which, as you probably know, is the carpet capital of the world.
WWD: Yes, north Georgia is a national hub for the rug industry. Was it difficult to set up a facility there? Can you tell us a bit about it?
J.F.: It wasn’t hard to find a space. Our facility is in Cartersville, Ga., about an hour north of Atlanta, surrounded by cow pastures and big warehouses. What’s interesting about the fabrication process is we have six massive tables, essentially air hockey tables, 40 feet by 40 feet. They allow us to maneuver these large 12-by-12 rugs — some weighing over 300 pounds — easily. Women who come from the sewing industry move these heavy rugs with just their fingers as they sew edges or serge the sides. It’s a cool process.
We stock rolls of 400 to 500 different [stock keeping units] in the facility. A lot of the premium ones are hand-knotted or hand-loomed in India. When you order a specific sku, we cut it to size, serge it, apply protective sprays, sew in rug pads if needed — all tailored to what the customer wants. It’s highly specialized, and this is all we do: custom-sized rugs.
WWD: While rugs seem to be your primary focus, do you have plans to expand Ernesta’s mission to other home decor products or acquisitions?
J.F.: Right now, we’re doubling down on rugs. This is a niche space, but it’s big enough to grow into and dominate. The custom rug market feels underserved, and we want to address that in the best way possible. But for now, we aren’t looking at other categories or acquisitions, as our energy and investments are channeled into scaling the business and improving our offerings.
WWD: Can you talk a little about the name “Ernesta”? What inspired it?
J.F.: The name is a nod to Ernest Hemingway, who was a big figure in both the Florida Keys, where I grew up, and Cuba, where my father grew up. There’s also an homage to music through Bob Marley— his middle name was “Nesta.” I wanted the name to reflect that music is part of our brand inspiration. Bigger rugs, for example, enhance how music sounds in a room by absorbing sound evenly. Creating spaces with great rugs has always been about making them feel warm, welcoming, and alive with conversation, music and comfort.
WWD: You mentioned having a history with Peloton. How has that experience shaped your journey with Ernesta?
J.F.: Peloton was such a passionate journey for me and my team. Coming out of COVID, when people no longer wanted to work out at home, was hard — it was a tough phase to navigate. Now, with Ernesta, I’m determined to prove that I wasn’t just lucky with Peloton and that I can build another successful brand.
We’ve got a phenomenal team — perhaps even better than what we had at Peloton — and a clear focus. This $20 million fundraise and the support from interior designers and homeowners has given us a huge vote of confidence. I’m 110 percent committed to Ernesta.
WWD: Are you involved in the creative direction of Ernesta Rugs?
J.F.: Not as much as people might think. Our chief merchant, Rosa Glenn, is the real visionary when it comes to design. I respect her leadership and our collective goal to provide intentional, curated options. I’m more focused on growing the business, raising funds, and ensuring operational excellence. That said, I occasionally chime in with ideas, which Rosa playfully entertains.
WWD: You’ve talked about your passion for design and the impact it has on living spaces. Are you a homebody at heart?
J.F.: I definitely love hosting at home — it’s where my “house proud” side seems to kick in. I want people to walk in, notice the details — the jazz playing in the background, the side lighting instead of overhead lighting, the warm ambiance created by thoughtfully curated elements — and feel special.
Creating elevated spaces is about ensuring those who enter feel good, and it’s something I’ve always cared about. At home, I try to craft a warm, welcoming environment, whether I’m hosting people or just enjoying it on my own.
