Discount baby goods e-tailer Babygear.com has shut down operations and filed for Chapter 7 bankruptcy, meaning it plans to liquidate its assets.
According to court documents (available at
http://ecf.nysb.uscourts.gov/cgi-bin/DocketSheet.pl?0-15700), Babygear.com
owes creditors holding unsecured nonpriority claims just under $11 million.
The company’s total assets are listed at $2.8 million.
“We regret to inform you that the Babygear.com web site has closed and is no
longer available,” a notice says on its Web site.
“Babygear.com has filed for bankruptcy – Chapter 7 Liquidation. They are unable to take orders, ship orders or issue credits. Any further matters will be handled by the court. Please contact
Babygear.com at research@babygear.com, regarding any additional questions you
may have.”
Interestingly, the site advises customers left hanging to contact their
credit card companies directly to dispute charges. The site continues to
post links referring customers to iMaternity and BabyAge.com, two partners
affiliated with the retailer.
Debra Cohen, an attorney for Marilyn Simon and Associates who is
representing Babygear.com, could not be reached for comment. But the court
records divulge several interesting facts about the company.
Currently, two cases are pending against Babygear.com. Advertising giant
DoubleClick filed a suit against Babygear.com to recover unpaid fees for
services rendered. And Internatioanl Fulfillment Services, Inc., Joseph
Sarcona Jr. and Michael Sarcona are also suing the company for “among other
things, misappropriation, theft, and negligence regarding the debtor’s
(Babygear’s) inventory.” Babygear.com is countersuing claiming there are
“accrued and unpaid charges for (use of a) warehouse.”
There was evidence several months ago that the online baby products seller
was in trouble.
In November, Babygear.com’s chief operating officer Joel Feigenbaum left the
company to take a job with the Reader’s Digest’s Books Are Fun, Ltd., a
display marketer of books and gifts. But, Babygear was backed by women’s
entertainment site iVillage, which sold its iBaby e-commerce division to the
company in July and took an undisclosed equity stake.
The company also had $30 million in funding from investors including media
giant Bertelsmann’s Gruner and Jahr publishing unit and VantagePoint Venture
Partners.
Babygear.com’s CEO, Preston Bealle could not be reached for comment.
