The company says it is speaking to potential buyers of parts of its business, having failed to sell as a going concern. Any beenz remaining in members’ accounts will be lost without compensation. The company burned around $80 million and peaked with 5 million users and 260 staff in 13 offices worldwide.
Dell Computer, the world's largest PC maker, yesterday reported a second quarter loss of $101 million, compared with a profit of $603 million a year earlier, blaming "intensive price competition".
Hewlett-Packard yesterday reported a sharp drop in its profits, down 89%, year on year, to $111 million for the quarter. HP recently cut 1,000 jobs and has announced another 6,000 cuts.
On-line directory Scoot, which had been running out of cash, has secured a deal to sell its free-ads newspaper Loot and on-line equivalent Loot.com for £45 million to the Daily Mail and General Trust, having bought it only one year ago for £190 million. Scoot said the deal will give it enough working capital to continue trading "at least until the beginning of October 2001."
The Industry Standard, the popular weekly technology magazine, has ceased publication, having run out of cash. Apart from the slump in ad revenue, much of its cash burn was blamed on efforts to prepare for an aborted IPO. Of 180 remaining staff, all but 15 jobs will be cut. The editor is hopeful of finding a buyer.
Egghead.com, the biggest IT retailer in the US, has filed for Chapter 11 bankruptcy, laid off 185 employees and has sold its site and assets to retail chain Fry’s electronics.
European Micro Holdings, which buys and sells surplus inventory hardware, has announced that it is unlikely to be able to continue trading as a going concern, according to TheRegister.co.uk.