New Chapter 11 Filing – Enjoy Technology, Inc.

On June 30, 2022, Palo Alto, California-based mobile technology retailer pairing company Enjoy Technology, Inc., along with two affiliates,  who provide a revolutionary commerce-at-home experience for consumers through the companies’ network of mobile retail stores, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 22-10580).  The company reports $100 million to $500 million in assets and $10 million to $50 million in liabilities.  The company states that since going public in 2021 through a special purpose acquisition company transaction, the company has been unable to achieve profitability due to the ongoing operating costs associated with the development and growth of their platform.  The company says they have received a proposal and signed letter of intent from Asurion LLC for a sale of substantially all of their U.S. assets.  Asurion has agreed to provide a small prepetition short-term bridge loan of $2.5 million and has agreed to fund a DIP facility of $55 million, including $52.25 million of new money and an interim rollup of the prepetition bridge loan.  The companies state they have an imminent need for the DIP because of their deteriorating cash position, which is currently insufficient to fund critical expenses, including payroll.

Cole Schotz does not represent the Debtors in this case.  We are posting this for informational purposes only.  If you have received a notice and have any questions, you should contact Debtors’ counsel.

Cole Schotz’s nationally renowned Bankruptcy & Corporate Restructuring group practices in Delaware, Maryland, New Jersey, New York, and Texas.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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