Juul eyes up investor bailout as it fends off US regulatory hurdles
JUUL is reportedly in talks with two of its top investors about a potential bailout as the vaping giant fends off US regulators.
As first reported by the Wall Street Journal (WSJ), Hyatt Hotels heir Nick Pritzker and Riaz Valani are weighing up whether to cover the firm’s operations and near term legal liabilities.
The US Food and Drug Administration (FDA) banned Juul e-cigarettes from American shelves back in June, with the authority later stating that this order was temporarily stayed.
Juul said in a statement to the WSJ that it would continue exploring options “as we fight to preserve our mission of transitioning adult smokers away from cigarettes while combating underage use.”
Juul faces fierce competition from the likes of Camel maker British American Tobacco, which has won approval from the FDA for its tobacco alternatives, as well as the growing popularity of new players like the Chinese owned Elf Bar.
Juul were not immediately available for further comment.