Hundreds of workers have been made redundant as the retail start-up Enjoy Technology, run by former Apple executive Ron Johnson, filed for bankruptcy.
A video has been circulated showing him announcing the mass redundancies to employees over Zoom. He said everyone working for the brand in Canada and Britain would lose their job.
The company based in Palo Alto, Califronia, was founded in 2014 by Mr Johnson, better known as the co-creator of Apple’s retail arm and for a turnaround of JC Penney Corp. He lent $10 million (£8.3m) to Enjoy shortly before the bankruptcy to help enable the company’s sale, court papers show.
Mr Johnson told them the outcome of a consultation had “resulted in redundancies for all UK employees” as well as those in Canada. The 400 people employed in the UK account for 18 per cent of Enjoy's workforce.
“Regrettably, I am informing you that Enjoy’s board is serving all UK employees with notice of redundancy today,” he said.
“I understand that this is not the outcome that any of us wanted.”
He said it had been “challenging” for the company “to get the unit economics right” while trying to build up the brand in Britain.
“Unfortunately, we will also close our Canadian operations as of today,” he said, as the company did not “see a profitable path forward in Canada as well”.
The company plans to continue operations and sell itself to Asurion LLC while in Chapter 11 bankruptcy, court papers show. Asurion has agreed to lend $52.5m (£43.6m) to fund the case.
Enjoy has struggled to raise the capital needed to fund its operations in recent years, according to court papers. The half-delivery start-up, half-tech-support company operates what it calls mobile retail stores that help consumers buy and set up technology gadgets, such as mobile phones, in their homes.
The company is now seeking protection from creditors “due to a rapidly declining cash position that has rendered them unable to pay operating expenses, including payroll”, Enjoy’s lawyers wrote in bankruptcy court filings.
Last year it went public by way of a merger with a so-called special-purpose acquisition company, namely Marquee Raine Acquisition Corp. The move brought in $112.6m (£93.5m) of fresh capital after the repayment of certain loans and transaction costs, court papers said.
On its website, Enjoy is described as a platform reinventing "commerce at home" to bring the best of the tech store to customers. It says the firm "has pioneered a new retail channel that can do everything that a traditional retail experience offers, but better".
The company has been contacted for comment.
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Keep it fun and engaging
Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.
“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.
His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.
He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.
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Barcelona v Real Madrid
Semi-final, first leg
Wednesday (midnight UAE)
ABU DHABI ORDER OF PLAY
Starting at 10am:
Daria Kasatkina v Qiang Wang
Veronika Kudermetova v Annet Kontaveit (10)
Maria Sakkari (9) v Anastasia Potapova
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Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek independent legal advice.
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Power: 197hp @ 5,500rpm
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
