Juul Labs, the e-cigarette company that is struggling with falling revenue and legal issues at home and abroad, said in a regulatory filing that it would close its manufacturing and sales operations in February, as noted by the company’s chief executive (above) in an interview with The Washington Post. “Juul Labs is actively engaged in discussions with its investors and other parties to explore possible alternatives to mitigate risks that stem from increased regulatory scrutiny and competitive pressures,” said the statement, signed by Richard Fade, Juul’s CEO. Juul noted that since the company had ceased sales in eight countries, it had moved its manufacturing to the United States, allowing the company to remain operational with 500 employees.
A year ago, Juul Labs announced plans to open a new manufacturing plant in China as part of a “poison pill” agreement designed to ward off a potential investment. In February, Juul Labs disclosed that China authorities had forced Juul to cease manufacturing in that country, reportedly because it did not have the approval of the State Food and Drug Administration of China. Last July, the FDA required manufacturers of e-cigarettes and other nicotine-containing products to submit detailed information about the materials and ingredients they use to build their products. Juul was the first major e-cigarette maker to receive a warning letter.