Mon. Jan 30th, 2023

jcpenney Launch Event in NYC

Astrid Stawiarz/Getty Images Entertainment

Enjoy Technology (NASDAQ:ENJY), the retail startup founded by former Target, Apple, and J.C. Penney executive Ron Johnson filed for bankruptcy. The filing for Chapter 11 protection comes less than one year after its debut on public markets via SPAC.

Company filings released on Wednesday and Thursday detailed the terms of the shutdown, including headcount reductions and asset sales. Namely, the company entered into a loan agreement with the privately-held technology repair company Asurion that will include its ultimate sale to the firm as well as the intention to immediately cut its headcount by 145. Following the reduction, the company estimates it retains 1,707 total employees worldwide.

Shares of the retail technology company tumbled over 95% in 2022, quickly coming to bankruptcy after its SPAC IPO in October 2021. Johnson is a controversial figure in retail, with numerous articles and columnists blaming him for the demise of JC Penney.

Read more on how short bets on J.C. Penney helped elevate Melvin Capital to prominence.

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