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Ron Johnson throughout a panel dialogue on the CNBC Evolve New York occasion on June 19, 2019.
Astrid Stawiarz | CNBC
Get pleasure from Expertise, a retail startup based by former Apple and J.C. Penney exec Ron Johnson, filed for Chapter 11 chapter safety on Thursday, mere months after it made its inventory market debut.
The corporate’s liquidity has dwindled whereas its enterprise has suffered from staffing shortages. Get pleasure from, which operates cellular retail shops, went public in October by way of a merger with a particular goal acquisition firm, or SPAC.
Get pleasure from stated in a submitting that it plans to promote its property in the USA to the know-how restore firm Asurion.
Asurion has agreed to supply $55 million of financing in order that Get pleasure from can proceed to function because it reorganizes in chapter safety from collectors, the submitting stated. Get pleasure from expects Asurion’s bid might be enough to pay all of its secured and unsecured collectors.
Get pleasure from and Asurion did not instantly reply to requests for remark.
Johnson, who can also be CEO of Get pleasure from, based the corporate in 2014. He’s greatest recognized for serving to to create Apple’s retail enterprise and for attempting to show across the J.C. Penney division retailer chain, albeit unsuccessfully. He was there from 2011 to 2013, a interval by which his technique alienated the retailer’s core prospects.
Final 12 months, amid a frenzy of SPAC offers, Get pleasure from went public by way of a merger with the clean examine firm Marquee Raine Acquisition Corp. On the time, the transaction valued the mixed enterprise at an enterprise worth of roughly $1.2 billion.
However extra lately, Get pleasure from was damage partly as SPAC buyers began to take again their cash and the enterprise was left with much less money, court docket filings present.
Get pleasure from lists solely $523,000 in money readily available. The corporate stated it has already begun shedding about 400 U.Ok.-based staff, or roughly 18% of its complete workforce.
Get pleasure from counted enterprise capital corporations together with Kleiner Perkins and Andreessen Horowitz as preliminary backers. The enterprise began to judge strategic alternate options this previous spring, based on the submitting.
Its shares, which commerce underneath 20 cents apiece, are down greater than 96% this 12 months, together with Thursday’s losses.
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