Embattled online retailer eToys has finally given up its hunt for a buyer and set a date for liquidation.
The company scrapped its British operation last month in an effort to keep the US business alive, but it has now admitted that it will file for bankruptcy protection within 10 days and will close its website around 8 March.
The California-based company has said it does not expect to meet its $270m in debts by selling off its assets, leaving many creditors empty-handed.
Previously, eToys' management said that the company had enough cash to continue running until the end of March. But without a buyer or additional financing - and without the traditional fallback of profits - the company has simply run out of cash.
Although eToys never made a profit, it floated on the hi tech Nasdaq stock market for $20 (£15) a share in May 1999. Yesterday shares were trading for less than 10 cents. Earlier this year, Nasdaq gave the company until 2 May to pull its share price above the $1 minimum requirement or risk being delisted from the stock market.
The fall of the high-profile company, which began with what many industry analysts regarded as a solid path to profitability, will further shake confidence in the already fragile online retailing sector.
The company had already told all of its 1,000 employees that they would be made redundant in April if no additional financing was secured. Now that date will be moved forward.
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