Ron Johnson’s latest venture — the “commerce at home” mobile retail concept Enjoy Technology — is set to run out of money in early June and is exploring its options, trying to find a path forward.
The company, which posted first-quarter net losses of $55.2 million on revenues of $24 million, said it retained Centerview Partners to assist with “a review of strategic alternatives, including a potential sale, merger or other strategic transaction, and of the company’s financing strategy.” AlixPartners was also brought on board to advise the company on its finances.
Enjoy has been posting steep losses as it pioneers a clearly expensive new form of retail that has sales associates delivering orders to customers’ homes and then trying to upsell them from a van stuffed with goods that can be sold on the spot.
The firm said it has secured interim financing of $10 million from a related party, giving it cash and cash equivalents of $36.1 million.
Enjoy said it is “in discussions with multiple financing sources to attempt to secure additional interim financing that is needed to fund its operations and other liquidity needs. In the absence of additional sources of liquidity, management anticipates that existing cash resources will not be sufficient to meet operating and liquidity needs beyond early June.”
Johnson, a veteran of Apple retail and J.C. Penney Co. Inc. who is chief executive officer of Enjoy, said: “We have commenced the strategic evaluation process to ensure we are exploring all potential paths that we hope will maximize the value of the company for our stakeholders. I’m very proud of our team’s continued hard work serving our customers during this challenging time.”
While Johnson hit a retail home run working with Steve Jobs at Apple to set up the tech giant’s retail powerhouse, he was unable to bring similar magic on his own at J.C. Penney, where he had a short, volatile tenure that proved costly for the company.
Enjoy went public in a SPAC merger in October, making, potentially, for the first casualty of last year’s rush of retail introductions on Wall Street.
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