Phase2Media May Close Its Doors

Internet advertising firm Phase2Media reportedly is closing its doors, yet another victim of the faltering dot-com economy.

A number of published reports this week cited sources close to the company as saying Phase2Media, New York, would either file for bankruptcy or announce a buyout.

Calls and e-mails to various company executives were not returned. However, a voice mail message for Kathryn Koegel, Phase2Media's vice president of marketing and public relations, said that as of June 30, she was no longer working at the company.

One published report said the company has drastically cut its workforce and is operating with a minimal staff. Another said Phase2Media laid off its entire staff but retained a small staff of accountants who are trying to collect more than $10 million owed to the company.

Trouble had been brewing at Phase2Media for a while. In April, the company 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.

In March, Phase2Media pulled its proposed $57.5 million initial public offering, citing market conditions.

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