Enjoy Technology
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Enjoy Technology Inc. was a Palo Alto company founded in 2014 by Ron Johnson, the former Apple retail chief and JCPenney CEO, operating 'mobile retail stores': customers bought smartphones and other technology online, and Enjoy's experts delivered the products to their homes and set them up in person. It operated in the U.S., U.K., and Canada, and went public via a SPAC in October 2021 at a $1.2 billion valuation.
02 / Enjoy Technology FAILURE REASONS
Failure reasons
Enjoy collapsed from declining liquidity. A large number of SPAC investors redeemed their shares rather than staying in, draining the funding the SPAC listing was supposed to provide; the 'supply chain crisis' and an inability to retain staff compounded the strain. It entered bankruptcy with just $523,000 of cash against $26 million in debt, and its shares fell from $12.16 to under 18 cents.
03 / EVENT HISTORY
Events in the structured record
- Asset restructuring
Enjoy Technology filed for bankruptcy protection in June 2022; substantially all assets were sold to Asurion in August.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
On June 30, 2022, Enjoy Technology filed for Chapter 11 bankruptcy protection in Delaware with $26 million in debt and just $523,000 of cash on hand, fewer than nine months after going public via SPAC.
- 02
It planned to sell its U.S. assets to technology-repair company Asurion, which provided $55 million in bankruptcy financing; its British unit cut 411 jobs (about 18% of the workforce).
- 03
In August 2022, the bankruptcy court approved Asurion's $110 million purchase of Enjoy's business.