Enjoy Technology Founded by Former Apple Executive Ron Johnson Files for Bankruptcy Just Months After IPO

Enjoy Technology, a retail technology company co-founded by former Apple executives Ron Johnson and Tom Suiter in 2014, filed for bankruptcy protection just eight months after its IPO. The company proposes to sell shares to the public through a special purpose acquisition company (SPAC) in October 2021.

According ReutersEnjoy Technology now plans to sell its assets to Asurion LLC, a private company based in Nashville, Tenn., which provides insurance for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry. .

Asurion has been reported to have agreed to donate $55 million for the funding so the tech retail company can continue to operate while it works on restructuring the business as part of the protection. against Chapter 11 creditors against bankruptcy. Enjoy Technology filed the case with the Delaware bankruptcy court.

As noted in the court filing, Enjoy is struggling to sustain its business due to dwindling cash. A restructuring adviser said that partly happened to the company, as many SPAC investors got their money back. The company also blamed the supply chain crisis and its inability to retain employees, which led to staff shortages.

Enjoy Technology revealed that it currently only has $523,000 in cash. The company already has a division in the UK, but is expected to cut 411 jobs there, equivalent to around 18% of the company’s total workforce.

Meanwhile, ahead of the bankruptcy filing, Enjoy Technology just released its first quarter 2022 financial results. That was in May, and the company reported huge losses, but still said it ” was exploring various options for raising capital, including partner financing, debt financing and equity solutions to continue its operations.

“We have begun the process of strategic evaluation to ensure that we are exploring all potential avenues that we hope will maximize the company’s value for our stakeholders,” CEO Ron Johnson added in the statement. Press release at this moment. “I am very proud of our team’s hard work serving our customers during this difficult time.”

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