Business Maverick: Juul considers bankruptcy amid US crackdown on e-cigarettes

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The e-cigarette producer has faced increasing pressure on its sales as regulators and prosecutors have tried to clamp down on teenage vaping. In June, the FDA banned the Juul products on US shelves, citing a lack of evidence demonstrating the overall ...

Juul Labs lost money in the first quarter after revenues dropped 23% from the prior year, according to people with knowledge of the matter. The company has been trying to regain public trust amid government crackdowns on teenage vaping and e-cigarettes.

The e-cigarette maker booked $259 million of revenue for the quarter ended March 31, said the sourcs, who saw the beleaguered company’s results as it seeks rescue financing. It had a loss of $28 million in the period, compared with earnings of $29 million for the same period a year earlier, based on unadjusted results before interest, taxes, depreciation and amortization.

Juul has faced increasing pressure on its sales as regulators and prosecutors have tried to clamp down on teenage vaping. In June, the FDAthe Juul products on US shelves, citing a lack of evidence demonstrating the overall safety of the company’s products, and noting Juul’s “disproportionate role in the rise in youth vaping.

its order, allowing the company to keep selling products for now. Juul is also facing a flurry of consumer lawsuits that could result in millions of dollars in damages.

 

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2022 U.S.-Africa Business Summit is Coming to Marrakech, MoroccoThe U.S.-Africa Business Summit is the first major in-person U.S.-Africa conference that meets the pent-up demand for countries and companies to re-engage and collaborate since the start of the COVID-19 pandemic. CCA has an exciting line-up of high level and panel discussions, networking opportunities, and activities that will allow attendees to meet face-to face to engage on key U.S.-Africa economic issues and re-establish important business contacts that were not possible over the past 2 years. Find out more.
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