NJoy Goes Under
Two months ago one of the first manufacturers of disposable e-cigs, NJoy, has filed for bankruptcy through the District Court of Delaware. NJoy is the first major manufacturer that’s a partial victim of the FDA’s regulations. Company’s founder, Mark Weiss, said that trying to keep compliant with the regulations while being plagued with particularly low sales contributed to the company’s demise.
NJoy was founded back in 2006 as Sottera Inc. and became known worldwide in 2010 when it was involved in a major lawsuit with the FDA. Sottera Inc. lost the lawsuit when Court of Appeals (DC Circuit) ruled that FDA indeed had the right to regulate e-cigarettes as tobacco products.
While NJoy might be the first vaping company to go under, it most certainly won’t be the last. A lot of smaller companies were already forced to close their doors but if a giant such as NJoy can be shaken up and brought to knees by the cost of compliance with the FDA rules (among other things) then no business is safe.
Original post by Sarah Willis