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The company told employees that it has stopped its bankruptcy preparations and is working on a cost-cutting program, the report said, adding that the e-cigarette maker also plans to lay off about 400 people and reduce its operating budget by 30% to 40%.
Juul did not immediately respond to a Reuters request for comment.
The financing is the first piece of a bailout package under discussion with two of Juul’s biggest investors, Hyatt Hotels (NYSE:H) heir Nick Pritzker and California investor Riaz Valani, the report said.
In a major blow to the once high-flying firm, the U.S. Food and Drug Administration in June banned the sale of Juul’s e-cigarettes which have been tied to a surge in teenage vaping. The FDA order was later temporarily stayed.
The company, partly owned by Marlboro maker Altria Group (NYSE:MO) Inc, in July said it was exploring several options including financing alternatives.
