Internet advertising firm Phase2Media, which earlier this month was said to be either looking for a buyer or about to file for bankruptcy, apparently has chosen the latter course of action. The company yesterday filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the Southern District of New York.
Trouble had been brewing at Phase2Media for a while. In March, Phase2Media pulled its proposed $57.5 million initial public offering, citing market conditions.
The company had been operating with a minimal staff after making drastic cuts to its workforce. In April, it said it would realign its sales and marketing team into one unit, resulting in a reduction of 40 positions, or about 30 percent of its workforce. The reduction was accomplished primarily through the elimination of the company's telephone sales team, which focused on dot-com business and its related administrative and support areas.