Ron Johnson throughout a panel dialogue on the CNBC Evolve New York occasion on June 19, 2019.
Astrid Stawiarz | CNBC
Take pleasure in Expertise, a retail startup based by former Apple and JC 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. Take pleasure in, which operates cellular retail shops, went public in October by a merger with a particular goal acquisition firm, or SPAC.
Take pleasure in mentioned in a submitting that it plans to promote its belongings in the USA to the know-how restore firm Asurion.
Asurion has agreed to offer $55 million of financing in order that Take pleasure in can proceed to function because it reorganizes out of business safety from collectors, the submitting mentioned. Take pleasure in expects Asurion’s bid shall be adequate to pay all of its secured and unsecured collectors.
Take pleasure in and Asurion did not instantly reply to requests for remark.
Johnson, who can be CEO of Take pleasure in, based the corporate in 2014. He’s greatest identified for serving to to create Apple’s retail enterprise and for attempting to show across the JC 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, Take pleasure in went public by 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, Take pleasure in was damage partly as SPAC traders began to take again their cash and the enterprise was left with much less money, courtroom filings present.
Take pleasure in lists solely $523,000 in money readily available. The corporate mentioned it has already begun shedding about 400 UK-based staff, or roughly 18% of its complete workforce.
Take pleasure in counted enterprise capital corporations together with Kleiner Perkins and Andreessen Horowitz as preliminary backers. The enterprise began to guage strategic alternate options this previous spring, in line with the submitting.
Its shares, which commerce beneath 20 cents apiece, are down greater than 96% this 12 months, together with Thursday’s losses.