The company known as Enjoy Technology, which offers mobile retail store services in the U.S., Canada and beyond, announced yesterday it is bleeding cash and may not have enough to survive past June.
Enjoy was founded by former Apple retail executive Ron Johnson in 2014, and the upstart went public last year, but right now its cash resources aren’t enough, reports Crunchbase.
The company’s services expanded to Canada in 2019, with Rogers exclusively offering the service in October, as part of its current Pro On-the-Go service. The offering will send a Rogers employee to anywhere a customer wants to help with mobile device purchasing and setup, including accessories.
The recent tech sell-off has also crushed Enjoy’s stock price, as the company is down 95% in the past six months, trading at $0.35 USD per share; back in November of last year it was at $7.50 USD per share.
Enjoy said on Monday during its Q1 earnings it had launched a review of strategic alternatives, noting its board has “initiated a review of strategic alternatives, including a potential sale, merger or other strategic transaction, and of the company’s financing strategy.” The news sent shares of Enjoy plummeting 52% on Tuesday.
The company saw a net loss of $55.2 million USD in Q1. Enjoy says it “anticipates that existing cash resources will not be sufficient to meet operating and liquidity needs beyond early June, 2022.”
It’s unclear how Enjoy’s mobile retail service will affect partners such as Rogers. For now, Rogers Pro On-the-Go is still operating, launching in Nova Scotia and Manitoba last fall.