Jolly had fallen on hard times.
For his infractions he did a stint of hard time in the big house.
When he got out his fellow elves no longer wanted anything to do with him.
His job at the North Pole was gone, so he couldn’t go back there.
Jolly floated for a while doing odd jobs but noting stuck.
Then one day he was offered a job dancing with the Chippenelves.
It seemed to be a good opportunity but Jolly’s dancing skills were seriously lacking.
Jolly was making less and less in tips and to make matters worse when the Chippenelves were being booked for a show it was requested that he not be there.
Needless to say it wasn’t long before he was canned from the dancing gig.
Jolly had hit rock bottom. Jenny was gone, he didn’t fit in with the other elves, and now no job.
It wasn’t long before Jolly found himself hanging out with a bunch of miscreants, the likes of Jack Sparrow and Evil Sock Monkey to name a few; drinking and carrying on.
Hopefully Jolly can manage to find his way back but it may not be till next year before we know.