Los Angeles–Unable to find further capital or a buyer, floundering online toy retailer eToys plans to shut down next week and file for bankruptcy protection from creditors. According to published reports, the company will sell off its assets, but eToys’ $274 million in outstanding liability will far exceed the proceeds from the sale of its assets.
Once one of the dot-com darlings of the late-1990s startups, eToys’ stock price soared to $86 in October 1999. But this past January, with its costs way out of control, the company laid off 70% of its workforce while closing two warehouses and its European business. The remaining employees were laid off in February.