SA国际传媒

, a company founded by former retail store executive , has filed for Chapter 11 bankruptcy protection, Thursday. The bankruptcy comes less than a year after Enjoy went public on the via a SPAC merger.

The company, which operates mobile retail stores for tech gadgets, is seeking protection from creditors 鈥渄ue to a rapidly declining cash position that has rendered them unable to pay operating expenses, including payroll,鈥� according to filings viewed by Bloomberg. The company will sell itself to Asurion LLC and plans to keep operating during the bankruptcy proceedings.

Palo Alto, California-based Enjoy is laying off more than 400 employees in the U.K., representing about 18% of its workforce, the filings show.

Enjoy raised more than $230 million in known venture funding, per SA国际传媒 data, from backers including , and , before it raised another $250 million in total gross capital via its SPAC merger in October.

But the company started issuing warnings in May this year that its cash was dwindling and it had 鈥渋nitiated a review of strategic alternatives.鈥�

Not alone

Enjoy is one of a growing number of companies that went public via SPAC mergers and are now facing the prospect of being delisted from the Nasdaq due to low share prices. Other companies that have received delisting warnings from Nasdaq as their shares have traded below $1 include used car marketplaces and and biotech company .

The company’s filing comes just weeks after , an electric vehicle startup that went public via SPAC in June 2021, via a Chapter 7 bankruptcy.

Bloomberg estimated that there are more than 35 former SPACs that trade below Nasdaq鈥檚 $1 listing threshold and at least 65 that are likely to need more financing over the next year to remain solvent.

Related reading

• The Dollar Stock Club: Delisting Looms For These Poorly Performing SPACs
• Mobile Retailer Enjoy Technology Eyes 鈥楽trategic Alternatives鈥� As Cash Dwindles
• The Market Minute: Halfway Through 2022 And The Outlook For SPACs And IPOs Isn鈥檛 Good聽聽

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