One of the examples of the e-commerce failure company is the Pet.com. Pet.com is the short-lived online business that sold the pet accessories directly to customer over the World Wide Web. The business is launched in the August 1998 and went public in February 2000, the former Nasdaq before 9 months went into liquidation. The business has rolled out the advertising to 10 cities through a variety of media by Christmas 1999. The company has had succeeded making its mascot, the pet.com sock puppet well known.
Pets.com has the investment of their warehousing. They anticipated that their revenue target would cover back their investment in the 4 to 5 years. This time period depends on growth of internet shopping and the percentage of pet owner that shopped on the internet. Unfortunately, in the year 2000, in the light of the venture capital situation after the bursting of the dot-com bubble, the Pets.com board realized that they would not be able to raise further capital. Thus, they forcefully to take action to sell their company. However, when PerSmart offered the lower price lower than the net cash value of the company, Pets.com’s board has refuse to sell.
Therefore, the company has closed down on the afternoon of November 6, 2000. As a result, the stock price had fallen from the date Feb 2000 at $11 per share to $0.19 the day it is announced liquidation. With regard to wind up the operation, Pets.com will lay off 255 of its 320 employees. Although the offer from PetSmart.com was declined, some assets were sold to PetSmart.com.
Pets.com has the investment of their warehousing. They anticipated that their revenue target would cover back their investment in the 4 to 5 years. This time period depends on growth of internet shopping and the percentage of pet owner that shopped on the internet. Unfortunately, in the year 2000, in the light of the venture capital situation after the bursting of the dot-com bubble, the Pets.com board realized that they would not be able to raise further capital. Thus, they forcefully to take action to sell their company. However, when PerSmart offered the lower price lower than the net cash value of the company, Pets.com’s board has refuse to sell.
Therefore, the company has closed down on the afternoon of November 6, 2000. As a result, the stock price had fallen from the date Feb 2000 at $11 per share to $0.19 the day it is announced liquidation. With regard to wind up the operation, Pets.com will lay off 255 of its 320 employees. Although the offer from PetSmart.com was declined, some assets were sold to PetSmart.com.
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