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To: GST who wrote (118675)	2/26/2001 9:26:53 PM
From: H James Morris	Read Replies (3) \| Respond to of 164684

Gst, I think it was Dizzie who was the first to bring eToys to this thread...not Billy! >Published: February 26 2001 22:19GMT \| Last Updated: February 27 2001 01:15GMT EToys has given up hopes of finding a rescuer, and plans to file for bankruptcy protection within five to 10 days. The online toy retailer, valued at $7.8bn on its first day of trading in May 1999, warned investors on Monday that it believed its stock was now "worthless". The company held out no hope of being able to emerge from Chapter 11 bankruptcy protection. The site will close on or about March 8, it said, and eToys will pursue a break-up sale of its assets. It remains unclear how much creditors will recoup of the $274m of liabilities eToys reported as of January 31. These include $150m in unsecured convertible notes and $47.5m in senior debt, lease obligations and other payables. The company said it had concluded its liabilities would "substantially exceed the value of any proceeds or assets that may be received in a strategic transaction". It added: "It became clear to us that we hadn't found a buyer for the whole company that would meet creditors' expectations." A committee of creditors, including toymakers Hasbro and Mattel, has been working with eToys for several weeks. EToys, which has told its employees their jobs will end by April 6, announced that three of its directors resigned on Monday after authorising the bankruptcy filing. Following the departures of Tony Hung, Michael Moritz and Dan Nova, only Toby Lenk, chairman and chief executive of eToys, and Peter Hart will remain to oversee the liquidation of its assets. EToys began operations in October 1997, but never made a profit. In the nine months to December 31, although sales rose from $128m to $182m, the group's net loss expanded from $141m to $196m, bringing the accumulated deficit to $429m. EToys stock has tumbled from a first-day close of $76.56 to 9 cents, down 3 cents on Monday.

To: GST who wrote (118675)	2/27/2001 12:31:49 AM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

"eToys to File for Bankruptcy, Stock Worthless" dailynews.yahoo.com My opinion is Etoys was one of the best run pure plays. The deal between Amazon and Toys R Us did them in. This prooves that dual channel is a necessity. Etoys did not really spend huge amounts on a comparison basis to try and deliver their product. In addition, toys are a good on-line product mix. Now the issue is what will Toys R Us do this fall when Amazon is lacking inventory for the fall selling season for their own lines of goods? Looking at what has transpired in hindsight, the KP group had enough connections to put the good firms out of business. I am not saying Etoys would have been profitable or a huge success but there was a possibility of continued existance. Competing with Amazon's cash war chest raised mostly in the Caymens (that is a scary thought on its own) and Toys R Us was too much for about a $200 million funded firm.