Playtime's Over for eToys

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eToys, Los Angeles, said yesterday that it will file for protection under federal bankruptcy laws within the next five to ten days.


The decision was based on the results of its efforts to pursue strategic alternatives and its conclusion that its outstanding liabilities, which totaled approximately $274 million as of January 31, 2001, will substantially exceed the value of any proceeds or assets that may be received in a stratetgic transaction.


The company further said that its outstanding equity securities, including both its common stock and its Series D preferred stock, have no value, and encouraged anyone considering an investment in these securities to consider its conclusion that they are worthless.


The company has also notified Nasdaq that it will not be able to meet its minimum net tangible assets requirement, and anticipates its common stock will be delisted from trading in the very near term.


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