Former Apple retail company Exec files for bankruptcy less than a year after SPAC deal
Enjoy Technology, a company founded by former Apple retail store executive Ron Johnson, has filed for Chapter 11 bankruptcy, Bloomberg reported Thursday. The bankruptcy comes less than a year after Enjoy went public on the Nasdaq through a SPAC merger.
The company, which operates mobile retail stores for tech gadgets, is seeking protection from creditors “due to a rapidly declining cash position that has left them unable to pay operating expenses, including mass salary,” according to documents seen by Bloomberg. The company will sell to Asurion LLC and plans to continue operating during bankruptcy proceedings.
Enjoy, based in Palo Alto, Calif., is laying off more than 400 employees in the UK, representing about 18% of its workforce, according to filings.
Search less. Close more.
Increase your revenue with all-in-one prospecting solutions powered by the leader in private business data.
Enjoy raised more than $230 million in known venture funding, according to Crunchbase data, from backers including Kleiner Perkins, Oak Investment Partners and L Catterton, before raising another $250 million in capital. total gross via its SPAC merger in October.
But the company began issuing warnings in May this year that its cash was dwindling and that it had “initiated a review of strategic alternatives”.
Enjoy is one of a growing number of companies that have gone public via SPAC mergers and now face the prospect of being delisted from the Nasdaq due to weak stock prices. Other companies that received Nasdaq delisting warnings because their shares traded below $1 include used-car markets CarLotz and Cazoo and biotech firm Clarus Therapeutics.
The company’s filing comes just weeks after Electric Last Mile Solutions, an electric vehicle startup that went public through SPAC in June 2021, filed for liquidation of the company through Chapter 7 bankruptcy.
Bloomberg estimated that there are more than 35 former SPACs trading below Nasdaq’s $1 listing threshold and at least 65 that will likely need more funding over the next year to remain solvent.
Illustration: Li-Anne Dias
Stay up to date with recent funding rounds, acquisitions and more with the Crunchbase Daily.