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http://dailynews.yahoo.com/h/nm/20010226/wr/retail_etoys_dc_1.html

Monday February 26 4:57 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 ``worthless.''

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 eToys.com 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.

-- K. (infosurf@yahoo.com), February 26, 2001