Peapod CEO Resigns, Several Investors Pull Out
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Reuters
CHICAGO (March 16) - Four firms have canceled plans to invest $120 million in online grocer Peapod Inc., citing the resignation of Peapod chief Bill Malloy, the company said on Thursday.
Peapod, which had been experiencing substantial operating losses since its inception, said it would examine its options, including other financing or a possible sale of the company.
Malloy is resigning as chief executive and president for health reasons, effective immediately, Peapod said.
Peapod, a pioneer in the online grocery industry, said last month that it had signed letters of intent with four companies to exchange preferred stock for the financing. The deal was expected to close this month.
The four firms have informed Peapod that they are terminating the letter of intent in light of Malloy's resignation, the company said.
Peapod said its board had told its financial advisers, Wasserstein Perrella & Co. Inc., to explore strategic alternatives, including other financing or a possible sale of the company.
Peapod has about $3 million in cash on hand.
"There can be no assurances that the company will be successful in finding or completing a transaction or that the company's resources will be sufficient to enable it to continue its operations during this process," Peapod said in a statement.
Andrew Parkinson, Peapod's chairman and co-founder, will assume the role of chief executive, assisted by a newly formed office of the chairman, the company said.
08:53 03-16-00 |
