Playtime's Over for eToys

Share this article:
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.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Customer Identity in the Digital Age

Customer Identity in the Digital Age

Industry experts explore the value in a person's cyber identity for marketers.

Epsilon Rebrands as End-to-End Marketing Solution

Epsilon Rebrands as End-to-End Marketing Solution

The goal is to flame the perception that technology and creativity live under one roof at the company, says President Andy Frawley.

Mobile Spend Vaults 76 Percent in First Half, IAB Reports

Mobile Spend Vaults 76 Percent in First Half, ...

Overall Internet ad revenues escalate by 15% to $23 billion, also fueled by increased activity in social media and video.