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Webvan Announces Shutdown and Chapter 11

Webvan Announces Shutdown and Chapter 11 — Internet grocer Webvan announced today that it has ceased operations and is filing for Chapter 11 bankruptcy protection. It has laid off its 2,000 employees and expects to delist its stock on NASDAQ. Though we’re sad to see Webvan fail, the event comes as little surprise, since Webvan has encountered numerous financial problems and never matched the quality of Seattle’s HomeGrocer.com, which Webvan acquired a year ago (see our article series on Internet grocery shopping for details). [JLC]

<http://www.webvan.com/>
<http://www.reuters.com/news_article.jhtml? type=internetnews&StoryID=108866>
<http://db.tidbits.com/getbits.acgi?tbser=1184>

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