Last month NJOY announced that they were filing for bankruptcy after their Kings 2.0 electronic cigarette failed to take off. In addition to the debt they had racked up over the years, they just couldn’t keep afloat any longer.
NJOY took part in a Chapter 11 auction on Nov. 2nd, 2016 to settle debts and sell the company to the highest bidder. The highest bidder was a joint effort between Douglas Teitelbaum Homewood Capital LLC and CGP Sottera Holdings LLC, called Homewood NJOY Acquisition LLC.
Homewood NJOY Acquisition LLC has pledged to pay $300,000 in cash for the company, pay off all outstanding debts that were accrued during the bankruptcy process, a credit bid representing $29.5 million, and assuming NJOY’s current debt.
The sale will be heard in a bankruptcy court in Delaware.
Douglas Teitelbaum Homewood Capital LLC is owned by Douglas Teitelbaum and has a history of investing in and turning around distressed companies. He’s also a board member director of several companies such as Barneys New York, Planet Hollyhood, and even NJOY.
I can’t find any information about CGP Sottera Holdings LLC, other than that they’ve been around since 2012. NJOY used to do business under the name of Soterra Inc, but I don’t know if they two are related in any way.
Anyway, it’s good to see that NJOY is in the process of being purchased and hopefully they keep putting out good beginner-level products.