Juul discusses possible bailout with two of its biggest investors – WSJ
7:11 pm Monday, October 24th, 2022
(Reuters) -Juul Labs Inc is in talks with two of its investors about a bailout that could help it avoid a bankruptcy filing, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Hyatt Hotels heir Nick Pritzker and California investor Riaz Valani are considering putting up money to cover the e-cigarette maker’s operations and near-term legal liabilities, the report said.
The bailout would help Juul stay in business and pursue the resolution of a dispute with federal regulators over whether its products can remain on the U.S. market, according to the report.
The U.S. Food and Drug Administration (FDA) in June banned the sale of Juul’s e-cigarettes in a major blow to the once high-flying firm whose products have been tied to a surge in teenage vaping. The FDA order was later temporarily stayed.
In a statement to the WSJ, Juul said it continues to explore several strategic options to secure its business and address the impact of the FDA’s stayed order “as we fight to preserve our mission of transitioning adult smokers away from cigarettes while combating underage use.”
In July, Juul had said it was in the early stages of exploring several options including financing alternatives.
Juul did not immediately respond to a Reuters request for comment, while parent Altria Group deferred questions to Juul.
(Reporting by Juby Babu in Bengaluru; Editing by Devika Syamnath)
