Pets.com to finalize liquidation plans

Pets.com Inc. announced it will hold a stockholders' meeting Jan. 16 to finalize liquidation plans for the failed online pet-supply retailer.

The San Francisco-based company said it will hold the meeting to ratify its dismantling and to get approval to rename the reconfigured company IPET Holdings Inc. Pets.com entered into a letter of intent to sell its trademark and domain name to Pasadena, Calif.-based Petsmart.com (see story).

Pets.com also restated in its final proxy statement to the Securities and Exchange Commission, filed Dec. 13, that it would give Chairman and CEO Julia Wainwright and nine other executives retention bonuses ranging from $75,000 to $225,000 and severance pay of as much as $235,000 (see story).

The company announced its plans to shut down and lay off most of its workforce in early November after it couldn't find new investors or a buyer (see story).

"We believe that the proceeds stockholders could receive over time is up to approximately $0.25 per share," the filing stated.

Seattle-based Amazon.com Inc. owns 8,973,029 shares or 24.5% of Pets.com's common stock and Pets.com executives and officers own another 16,474,319 or 44%.

Stockholders are expected to get the initial distribution of liquidation proceeds sometime in 2001, according to the SEC filing.

"Thereafter, as we liquidate our remaining assets and properties we will distribute available liquidation proceeds, if any, to stockholders as the board of directors deems appropriate," the SEC filing reads. "We anticipate that the majority of the remaining liquidation proceeds will be distributed over a period of three years."

5 power user tips for Microsoft OneNote
  
Shop Tech Products at Amazon