Wintry Economy Shows No Signs of Abating
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No fewer than four online purveyors of online goods and/or services announced that they have succumb to the harsh economic times.
Following its closing on March 12, online healthcare destination PlanetRx.com Inc. Thursday said it plans to close up shop by liquidating its assets. PlanetRx.com's board Thursday authorized a plan of liquidation and proxy statement which it intends to submit for shareholder approval at a company meeting scheduled for June 12. The plan calls for the liquidation of all assets, including the company's distribution center in Memphis, Tenn.
PlanetRx.com has already listed a number of its domain names for sale at the GreatDomains.com site and has not accepted prescriptions since Feb. 12.
"After months of deliberations and evaluations, PlanetRx.com's Board of Directors has concluded that a plan of liquidation presents the best option to preserve remaining shareholder value," said Michael Beindorrf, PlanetRx.com's chairman and chief executive officer. "Therefore, it is in the best interest of our shareholders to develop a plan for the disposition of PlanetRx.com's assets in an orderly and efficient manner."
The 21 positions represent 16 percent of the company's total workforce. eMachines is closing its sales and development facilities in San Francisco and Scotts Valley, Calif. and New York City.
The actions are expected to result in a net savings of approximately $2.8 million for the year 2001, after taking into effect a reduction in revenue of approximately $1.6 million.