E-cigarette maker Juul considers possible bankruptcy – Altria Group
- Juul Labs Incsupported by Altria Group Inc MONhas explored various options — including bankruptcy — after the FDA issued its denial-of-marketing order.
- The vape maker is in informal talks about self-administered financing, Bloomberg reportedciting persons with knowledge of the preparations.
- Preparations are ongoing and plans are subject to change. The report further quoted a Juul spokesperson as saying that the company was still considering other avenues.
- In September Juul Labs Filed a complaint blamed the FDA’s refusal to disclose documents supporting its banning order on the company’s products.
- “We will continue the preparation process for both a restructuring and other strategic options while we determine which path is best for our company,” the spokesman quoted the report as saying.
- Juul hired bankruptcy advisors Kirkland & Ellis and Alvarez & Marsal in June The FDA has banned Juul products on US shelves, citing a lack of evidence demonstrating their overall safety.
- Juul recently won a court order temporarily blocking the FDA decision, and the agency separately suspended its ban, allowing the company to continue selling products.
- Related: FDA temporarily suspends Juul e-cigarette ban
- Price promotion: MO shares are down 0.71% to $42.20 during the premarket session last check Wednesday.
- Photo via Wikimedia Commons
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