EToys Files for Bankruptcy
The company closed its Web site last night.
It was to be delisted from the Nasdaq at the opening of business today. The company failed to maintain the required $1 minimum for 30 consecutive trading days.
As announced last week, the company said its decision to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code was based on its inability to pursue strategic alternatives. Its outstanding liabilities, which totaled approximately $274 million as of Jan. 31, exceeded the value of any proceeds or assets that it could have received in a transaction.
The company had forecast a poor holiday quarter on Dec. 15, blaming a harsh retail climate and the "disfavor of Internet retailing."
Healthcare products maker Johnson & Johnson bought BabyCenter Inc. from eToys for $10 million on Friday. The acquisition included three Web sites: BabyCenter.com, which offers information to expectant mothers and new parents; ParentCenter.com; and BabyCentre.co.uk.