Founded in 2006, with the mission of making combustible cigarettes a thing of the past, NJOY Inc., the country’s largest independent e-cigarette provider, has filed for bankruptcy.
The company filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on Sept. 16 in Delaware federal court; much to the dismay of high-powered investors including Napster co-founder Sean Parker, PayPal founder Peter Thiel and pop singer Bruno Mars.
Those three joined other investors who put stake in NJOY and were part of a multi-million dollar capital round that placed the value of the company at $1 billion in 2013, the New York Post reports.
The legal news service Law360 pointed out that NJOY’s decision to file for bankruptcy protection came after the Arizona-based company reported significant losses following the 2013 release of its Kings 2.0 product, which was an updated version of its Kings disposable e-cigarette that ultimately failed to meet consumer expectations.
NJOY suffered this disastrous blow in the aftermath of the Food and Drug Administration’s first round of regulations that came to pass on August 8, at a time when the future of all other vapor product companies is uncertain.
You can read more about this story in the New York Post by clicking here.