NJOY, one of the best-known and longest-established US electronic-cigarette makers, has filed for bankruptcy, according to a story by Barnaby Page for ECigIntelligence.
The company cited the market failure of its upgraded King disposable product in 2013-2014, followed by its expenditure on relaunching the NJOY brand itself.
It mentioned also the ‘substantial expenses’ of preparing for the Food and Drug Administration’s deeming regulations, complying with state laws, and the cost of defending the patent infringement case brought against it and other electronic-cigarette companies by Imperial Tobacco’s Fontem Ventures.
Under the chapter 11 petition to the bankruptcy court in Delaware, NJOY is seeking to carry on in business, paying staff and certain suppliers essential to its operations, while it tries to sell its assets.
The full story is at: http://ecigintelligence.com/njoy-files-for-bankruptcy-blaming-poor-sales-and-compliance-costs/?utm_source=wysija&utm_medium=email&utm_campaign=Daily+news+update