The once red-hot vaping company intends to lay off nearly 400 people and lower its operating budget by 30% to 40%.
The company expressed the investment would support Juul run its business operations. At the same time, it goes forward with its administrative look at the U.S. Food and Drug Administration’s marketing refusal order linked to its e-cigarettes.
The Company Did Not Disclose the Amount of The Investment
Last month, the Wall Street Journal conveyed Juul could file for Chapter 11 bankruptcy while digging for an alternative, such as a sale, investment, or loan, that could pause a filing.
Juul’s e-cigarettes received a ban in the U.S. in late June after the FDA figured that the company had fallen to show that the sale of its products would be suitable for public health. But following an appeal, the health regulator restricted the hold and agreed to an additional inspection of Juul’s marketing application.
In July, the company stated it was in the early steps of exploring options, including financing options, as it had to deal with lawsuits connected to the marketing of its e-cigarettes.
The financing is the first piece of a bailout package under debate with two of Juul’s most prominent investors, Hyatt Hotels (NYSE: H) heir Nick Pritzker and California investor Riaz Valani, as stated by a Journal report on Thursday.
In late September, Marlboro producer Altria Group (NYSE: MO) Inc, which partly owns Juul, wielded the option to be removed from its non-compete deal with the e-cigarette company almost four years after purchasing a 35% stake in the company.
