Ron Johnson during the board discussion at the CNBC Evolve New York event on June 19, 2019.
Astrid Stawiarz | CNBC
Enjoy technologya retail startup founded by former Apple and JC Penney exec Ron Johnson, filed for Chapter 11 bankruptcy protection on Thursday, just months after its stock market debut. securities.
The company’s liquidity decreased while the company’s business activities encountered a shortage of personnel. Enjoy, which operates mobile retail stores, went public in October through a merger with a special purpose acquisition company, or SPAC.
Enjoy to tell in a profile that it plans to sell its assets in the United States to tech repair company Asurion.
Asurion has agreed to provide $55 million in financing so Enjoy can continue operating as it reorganizes its bankruptcy protection from creditors, the filing said. Enjoy the expectation that Asurion’s bid will be sufficient to pay all secured and unsecured creditors.
Enjoy and Asurion did not immediately respond to requests for comment.
Johnson, who is also CEO of Enjoy, founded the company in 2014. He is best known for helping create Apple’s retail business and trying to turn the JC Penney department store chain around. though unsuccessful. He was there from 2011 to 2013, a period in which his strategy alienated the retailer’s core customers.
Last year, amid a flurry of SPAC deals, Enjoy went public through the merger with the white check company At the time, Marquee Raine Acquisition Corp.
But recently, Enjoy was partially hurt as SPAC investors started getting their money back and the business was left with less cash, court filings show.
Enjoy listings for only $523,000 in cash. The company says it has begun laying off around 400 UK employees, or 18% of its total workforce.
Enjoy venture capital firms including Kleiner Perkins and Andreessen Horowitz as early backers. The business began evaluating strategic alternatives this past spring, according to the filing.
Its shares, which trade less than 20 cents each, are down more than 96% this year, including Thursday’s loss.