Troubled Internet retailer eToys filed for bankruptcy Wednesday and said it will shutter its Web site by the end of the day.
The company also said its stock, which last traded on the Nasdaq stock market at 9 cents per share before trading was halted last week, will officially be delisted Thursday. The firm filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Wilmington, Del., where it is incorporated. It plans to end all operations by April 6.
In its filing, eToys said that as of Dec. 31, it had assets of $416.9 million and debts of $285 million. Company spokesman Ken Ross said debts now far exceeded assets. The company has used some of the cash for ongoing expenses and sold much of its inventory, he said. Last week, the company sold its BabyCenter Inc. business to Johnson & Johnson for $10 million but the proceeds from a sale of assets are not enough to cover its liabilities, the company said.
(Copyright 2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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