According to people in the know, Juul Labs Inc. has started talks for funding of a potential Chapter 11 bankruptcy, reports Bloomberg.

Juul is said to be in informal talks about debtor-in-possession financing with formal discussions expected to happen over the coming days. Juul had previously hired bankruptcy advisers Kirkland & Ellis and Alvarez & Marsal after its products were banned from being sold in the US by the US Food and Drug Administration (FDA) back in June. Juul managed to win a court order that temporarily blocked the FDA’s ban but has been considering different options including filing for bankruptcy. According to Bloomberg, a Juul spokesman said that the company is still considering other avenues. “We will continue the preparation process for both a restructuring and other strategic options as we determine what path is best for our company,” he said.
Juul has faced a significant number of lawsuits regarding its marketing practices which allegedly targeted minors and has already agreed to settle some claims for a total of over USD 500 million.