Reinhold Grether on 27 Feb 2001 01:34:20 -0000

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[rohrpost] eToys to File for Bankruptcy

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Monday February 26 4:59 PM ET
eToys to File for Bankruptcy 

LOS ANGELES (Reuters) - Internet toy retailer eToys
Inc. (NasdaqNM:ETYS - news) announced on Monday
plans to file for protection under federal bankruptcy law
within the next five to 10 days and said its stock is

The company, whose Nasdaq-listed shares were halted
for news pending before markets closed, said it made
the decision after concluding that its outstanding
liabilities, which totaled around $274 million as of Jan.
31, will substantially exceed the value of any proceeds
or assets that may be received in a strategic
transaction. It expects to close the Web site
on or about March 8.

eToys also said it has concluded that its outstanding
equity securities, including both its common stock and
its Series D preferred stock, have no value and warned
potential investors to take heed of the company's belief
that the stock is worthless.

eToys also said it received a notice from Nasdaq that it
no longer meets the minimum net tangible assets
requirement and the company expects its stock to be
delisted "in the very near term.''

The company, which had sought a buyer, reiterated that
it has enough cash to continue operations only to March
31, at the latest, and that it has provided job
elimination notices to all of its employees.

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