Value America Files for Chapter 11Value America filed for Chapter 11 bankruptcy proceedings Aug. 11 and terminated 185 employees in its retailing operation as a result. The news came in a Value America statement making little mention of anything but their Internet ventures.
The company has discontinued business, but will continue with its e-services development efforts during its reorganization. Visitors to va.com are alerted to the proceedings and instructed that any orders taken on or before Aug. 11 will be fulfilled.
"The decision to shut down our Internet retailing business was difficult," said chairman and CEO Glenda Dorchak in the statement. "Despite tremendous efforts on the part of our employees and the loyalty of our vendors and customers, it has become apparent that the prospect for near-term provinciality of a company engaged exclusively in the retail side of the electronic commerce industry is not assured."
The statement also said the company expects its Internet ventures would emerge alone from the proceedings as "it subjected its e-services business plan to due diligence reviews by potential commercial partners and received favorable feedback."